Murray School District and Murray Education Association have completed negotiations for the 1988-89 school year. Teachers will get an increase in medical insurance and small increases in increments between steps in their salary schedule, but no salary increase per se.

"Considering the situation in which we found ourselves, the negotiations went fairly well," said Assistant Superintendent David L. West, who heads the district's negotiating team.The increase in steps of the salary schedule will add $88 to $196 per year for teachers at the top of the schedule.

An ad hoc insurance study committee will be formed with representation of teachers, administrators and classified employees. The committee will make recommendations on curtailing spiraling medical insurance costs.

The new contract also removes restrictions on the number of days allowed for military leave and allows for a hearing examiner in grievance procedures. Sick leave was extended to hourly employees who have worked for the district three years or more.