Rochester Public Schools and Principals Union Finalize Two-Year Contract

The new agreement includes a 7.58% increase in total compensation over the previous contract.

Mar. 18, 2026 at 4:04am

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After months of negotiations and mediation, Rochester Public Schools and the district's principals union have finalized a new two-year contract covering the 2025-26 and 2026-27 school years. The total compensation package represents a 7.58% increase over the previous agreement, with principals receiving cost-of-living increases, step advancements, and increased longevity stipends.

Why it matters

The contract negotiations took place against the backdrop of upcoming budget cuts of over $8 million for the district, making the final agreement an important outcome that balances the needs of the principals with the district's financial constraints.

The details

The new contract includes a 1.31% cost-of-living increase and step advancement in the first year, followed by a 3% increase and step advancement in the second year. Principals will also receive a $250 increase to their annual longevity stipend, bringing it up to $1,750 in the first year and $2,000 in the second. Additionally, the agreement includes a one-time $50,000 early retirement incentive for up to five principals with 20 or more years of service in the district.

  • The school board approved the contract on March 17, 2026.
  • The principals union ratified the agreement earlier in March 2026.
  • The new contract covers the 2025-26 and 2026-27 school years.

The players

Rochester Public Schools

The public school district serving the city of Rochester, Minnesota.

Rochester Principals Association

The union representing principals in the Rochester Public Schools district.

Karl Bakken

The Human Resources Director for Rochester Public Schools.

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What they’re saying

“The total compensation package will represent a 7.58% increase over the previous agreement.”

— Karl Bakken, Human Resources Director

What’s next

The formal contract has not yet been finalized in print, although the details have been agreed to. Principals will have until March 27, 2026 to accept the $50,000 early retirement incentive offer.

The takeaway

The new contract represents a compromise between the district and the principals union, with the total compensation increase fitting within the parameters established by the school board despite the district's upcoming budget cuts. The agreement aims to retain experienced principals while also managing costs for the district.