The contract covers about 13,000 teachers, who are members of the Hawai'i State Teachers Association. The deal covers the period July 1, 2007 through June 30, 2009.

Gov. Linda Lingle announced the tentative agreement this afternoon.

The total cost of the contract is $119,380,888.

"This negotiated contract between the state and the HSTA is a fair settlement that recognizes the dedication and hard work of our teachers and the important role they play in making a positive difference in the lives of students," Lingle said in a written statement. "I want to thank the negotiating teams for their efforts to reach an agreement that will ensure no disruption in classroom time."

Under the terms of the contract, HSTA members will receive a 4 percent raise at the start of the next school year, with a step movement in the second semester, and a 4 percent raise that will take effect at the start of the second semester in the 2008 school year.

In addition, for teachers who also serve as band directors, drama coaches, chorus directors, grade level chairpersons and agricultural teachers, the state will increase their current supplementary pay by 25 percent per year. These teachers devote many additional after-school hours to working with students.