Teachers throughout Butler County and some places beyond are no doubt watching developments in the contract negotiations between the Mars School District and its teachers union.

Mars teachers have been working under terms of their former contract since last July 1, and both sides still say they are not close to a settlement on a new pact.

The two sides continue to negotiate; that's positive. But how long the situation remains amicable remains to be seen.

Residents are hoping that the situation won't deteriorate to a disruption of this school year or classes in 2007-08, but the longer an agreement remains elusive, the less likely that won't occur.

It is to be hoped that a settlement is forthcoming without a work stoppage. But amid that hope is the realization that the current stalemate is being affected by a new tier of considerations, primarily brought about by the new state law called Act 1.

While affecting Mars now, the law, as long as it remains on the books, will affect other districts as well, when they enter teacher contract negotiations in the future.

Complicating matters is that Act 1 not only has an impact on contract negotiations, but on all facets of school district operations.

Act 1 caps the amount a school district may increase taxes without seeking approval from the voters by way of a referendum.

Then there are the future school district financial obligations tied to a huge teacher pension increase approved by the legislature in 2001. It is believed taxpayers will begin feeling the full brunt of the legislature's generous, albeit shortsighted, action in 2011 or 2012.

While tax increases tied to the General Assembly's pension action aren't subject to a voter referendum, those anticipated increases are imposing pressures upon districts to keep all costs in line to avoid taxpayer anger and unrest.

That is why Mars officials have taken a tough stance in the current talks. Rightly, they are looking at the total picture — the short term and the long term.

Obviously, they aren't optimistic about the scenario they envision.

It is no surprise that wages and health care premium contributions by the teachers continue to be the main sticking points in the Mars negotiations. Those two issues have been the main bottlenecks elsewhere.

While both sides in the Mars stalemate will have to give a little, Act 1 might require that the teachers receive a less-favorable pact than they might have received if the law weren't in effect.

Fortunately for the teachers, they have been receiving annual pay increases much more generous than what many other workers in this county have been receiving in recent years — and, when compared with other workers, also much better health care benefits.

"You can't settle for something you're not going to be able to live on," said Ted Gross, a Mars High School social studies teacher who also is chief negotiator for the Mars Area Education Association.

However, most Mars district residents don't view the district's teachers as having been shortchanged by way of pay, benefits or working conditions.

"Since Act 1, people on (school) boards are aware they have limitations placed on their future ability to pay for these (contract) deals," said Tom King, district solicitor and district chief negotiator.

"School boards have to be cognizant of the burden on taxpayers," he said. "We can't continue to provide (health care) plans not in sync with the rest of the world."

Act 1 is — and will continue to be — a major obstacle for teachers in their desire to obtain a contract as good as what might exist in neighboring districts.

As a result of Act 1 and the future pension obligations, contracts are likely to be more about what individual districts can truly afford.

That is the issue with which Mars currently is grappling. A middle ground with which both sides can live has yet to be found.

About all that is certain is that Act 1 isn't going to go away anytime soon.

When Mars teachers accept that reality, the prospects for a settlement will be greatly improved.