The audit also recommended that any school district that fails to make progress in those areas by the 2007 legislative session should be subjected to decreased funding.

For that reason, the proposed contract also eliminates early retirement benefits for all employees hired after Aug. 31 of this year. Current teachers would still have those benefits.

Not every teacher is upset by the reduction in retirement benefits. Younger teachers, who haven't paid much into Medigap, were more concerned with the new health insurance premiums and the smaller-than-hoped for 0.5 percent wage increase.

Some teachers said the increase would be offset by the 5 percent premium that the teachers would be required to pay under the new contract. Teachers did not have a premium under the previous contract.

"Still," one teacher said, "I was bracing for worse." The teacher, who did not wish to be identified, said rumors of a 20 percent premium had been circulating.

The question now is if the proposed contract will be approved. Teachers have until Thursday to vote at their respective schools.

The contract's prospects are still up in the air. Many of the veteran teachers made it clear they were going to vote no but said they expect a number of their colleagues will approve the contract.

"Like lambs to the slaughter," one teacher said.

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E-mail: jtwitchell@desnews.com