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ORFORDVILLE — Parkview School District teachers and staff will begin contributing to their retirement and health insurance costs and take a 2 percent pay cut under a contract extension approved for next year. The Parkview School Board negotiated a deal over the past week to extend until June 30, 2012, contracts expiring June 30 with the Parkview Schools Education Association and Local 938 of WCCME, AFSCME, AFL-CIO. The two associations and the school board approved the agreements Friday, District Administrator Steve Lutzke said. The concessions in the contracts when combined with a retirement and one resignation result in savings of $665,000, he said. Terms of the contracts include: -- Employees paying half of their retirement contribution. -- Employees paying 4.99 percent of their health and dental insurance premiums. Employees currently pay nothing. -- Eliminating lane or step movement on the salary schedule for the 2011-12 school year, and on July 1 reducing by 2 percent each cell of the 2011-12 salary schedule. -- Cutting personal days from three to two. The teachers union represents 83 teachers, and Local 938 represents 65 food service workers, custodians,Office Home And Student 2010 32 Bit, instructional assistants and secretaries. The 2 percent salary reduction combined with the 4.99 percent insurance contribution are approximately equal to the 12.6 percent health insurance contribution called for under Gov. Scott Walker's budget repair bill,Office 2010 Pro 64 Bit, Lutzke said. Through the contract modifications, he said, all employees will share the impact rather than just those on the insurance plan. Keeping employee insurance contributions under 5 percent will allow the district to operate under existing health care rules and avoid federal regulation changes expected in 2013,Microsoft Office Professional Plus 2007 Activation, he said. Lutzke said he was skeptical about trying to get a deal done so quickly because he doesn't like to rush things. But with Walker signing the budget repair bill on Friday, the district figured it had until Saturday or Monday to get a contract signed. "I feel comfortable with it in the fact that teachers kind of know what next year will look like, know how much they'll be paid,Office 2010 Home And Student 32 Bit, they're going to have a job, so they can kind of leave and say let the dust settle in Madison and see what's left after it does,Microsoft Office Standard 2007," Lutzke said. Updated numbers from the state Tuesday show Parkview's deficit next year will be $1.27 million. The district had $400,000 in cuts planned, and the latest concessions bring the deficit down to about $300,000. A positive shift in open enrollment numbers is expected to make up about $100,000, Lutzke said, and depending on additional retirements, the district might lay off only one or two employees.