The South Bend School Board has approved a new teacher contract that makes the district the highest paying in the region.

The agreement, passed unanimously Monday night, will raise average teacher salaries to about $65,000 a year and move South Bend schools into Indiana’s top 10 for teacher pay within two years.

The deal also boosts pay for coaches and club sponsors by 35%.

Officials say the raises will be covered by $15 million in operational savings, not new spending.