PALM BEACH COUNTY, Fla. (CBS12) — The Palm Beach County School District has rejected a mediator’s 3.5% pay raise proposal, sending the monthslong salary dispute to the School Board for a final decision.

The proposal by the Special Magistrate was intended to resolve a monthslong deadlock between the district and the Palm Beach County Classroom Teachers Association. The union has consistently advocated for a 5% salary increase, while the district’s most recent offer sat at a 1.5% raise coupled with a 1.5% one-time bonus.

District officials formally turned down the 3.5% compromise this week, stating that the increase is not financially sustainable. In previous statements, district spokesperson Sean Cooley pointed to a $40 million budget shortfall and a decline in enrollment of roughly 6,000 students as primary reasons for fiscal restraint.

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The district has warned that permanent costs at that level would require significant cuts to student support programs and non-instructional staff.

Gordon Longhofer, president of the Teachers Association, has argued that the district’s refusal to meet the 5% demand is unjust. He noted that teacher performance has been instrumental in securing the district’s A-rating and its status as a high-achieving academic performer in the state of Florida.

With the mediator’s recommendation rejected, the decision-making process now moves to the Palm Beach County School Board. The board holds the final authority to resolve the impasse and is expected to hold a vote in the coming weeks to set the salary schedule. Teachers, who have held numerous rallies to draw attention to the dispute, say they will be monitoring the upcoming board proceedings closely.