There was no contract agreement late Thursday afternoon between the Brainerd School Board and Education Minnesota Brainerd, the district's teachers' union, school officials said.
Union president Tim Edinger could not be reached for comment Thursday afternoon.
An agreement is not expected to be reached by the midnight Friday deadline. As a result, the district will lose $200,000 in state appropriations, a penalty imposed by state statute.
The school board Personnel Committee will meet in closed session at 5:30 p.m. Friday to discuss the negotiations and any new developments that may occur and then a special school board meeting will follow at 6 p.m. to publicly report on the issue or potentially take board action.
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