Panther Valley School District and its teachers union have agreed to a new contract, which they say sets a new precedent in communication between both sides.

On Thursday, school board members approved the contract as well as a $26 million budget that will not raise taxes.The contract will run through July 2020. It will be retroactive to July 2015, when the teachers' last contract expired.It was one of several measures that led to the no-increase budget passed Thursday night. The board furloughed three paraprofessionals in the elementary school, where enrollment is declining, and cut back two elective classes at the high school. Many staff will also have new assignments in 2017-18.Union leadership met with administrators on two occasions, without attorneys in the room, and were able to sign a new deal for Panther Valley Education Association's 115 members. The head of the union, Terence Bonner Jr., thanked the school board and administrators for a civil negotiating process."I can't commend enough, our board and administration's efforts to meet with us, open the lines of communication, and foster an atmosphere of teamwork rather than one of animosity," Bonner said.Teachers will get a 3 percent per year increase over five years, but agreed to pay a greater share of their health cost through a larger deductible.Board President Wayne Gryzik echoed the fact that the communication between both sides led to the deal."It was a pleasure working with the PVEA, (Vice President Tara) Yurichek and Mr. Bonner - I think we wanted to set a new precedent here," he said.The district was able to trim $490,000 from its budget. That came through the furloughs, the retirement of three longtime teachers, by eliminating family and consumer science at the high school, and cutting German class offerings to just half a day."We eliminated some positions through attrition in an effort to provide the district with some substantial savings. Declining numbers in enrollment also dictated some of the decision making process," superintendent Dennis Kergick said.The district also decided to move about a dozen staff, most from Panther Valley Elementary, to other positions in the district.The school board also voted to accept a new dress code for the 2017-18 school year, with the biggest change being that students can choose the color of their clothing.In recent years, Panther Valley students were required to wear school colors.They also voted to give Kergick a new, three-year contract as the district's superintendent. Kergick, who arrived in the district in 2014, will make $102,937 in 2017-18.