PHILADELPHIA (CBS) – The Philadelphia Federation of Teachers met Thursday night and voted to extend their contract with the School District of Philadelphia through August 2013. The deal will contribute tens of millions of dollars to the school district’s budget shortfall.

The contract extension ensures that teachers get a three-percent raise in January of 2012 and keeps all of their benefits intact.  In exchange, the teachers will put a dent in the school district’s $75-million deficit by giving up $30 million from their health and welfare fund.

“We’re not giving to the district, we are really giving to the children of Philadelphia because we do care about what happens in schools and what happens to the kids,” Federation president Jerry Jordan said.

Jordan says under the agreement, the teachers will also allow the district to postpone about $28 million in payments to the fund, for a total of $58 million in upfront savings.

Reported by Cherri Gregg, KYW Newsradio 1060

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