FAIRBANKS -- Public school teachers in Fairbanks have a contract deal with the Fairbanks North Star Borough School District.

The Fairbanks Education Association and the borough announced the tentative two-year deal after negotiations Monday with a mediator.

It calls for a 1.5 percent cost-of-living salary increase and $1,500 stipends for teachers who do not move up a step on the salary schedule.

Teachers next year will receive a 1.75 percent salary increase. The contract also calls for modest increases in each salary schedule cell and $1,500 stipends for teachers who won't move up a step.

The previous contract expired June 30. The Fairbanks Daily News-Miner reports teachers have worked under terms of the previous contract.

The new deal must be ratified by teachers before it takes effect.