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Teachers in the William Floyd school district have agreed to give up $1 million in pay raises in order to save jobs - a decision that regional union representatives describe as the first major contract concession in recent memory.

According to union leaders, the district's 733 teachers overwhelmingly voted to accept a 2.5 percent pay hike next year, rather than the 3.5 percent raise originally negotiated. That's in addition to annual pay "increments" already built into district pay scales.

In return, teachers would get a one-year contract extension through the 2010-11 school year worth an additional 2.5 percent, representatives say. William Floyd district officials Tuesday announced the agreement, which is to be formally ratified by school-board trustees Wednesday night.

"We are very appreciative that the teachers' union has made this generous offer," said Robert Vecchio, the school board president. He added that the agreement would allow the district to avoid painful cuts in staffing and student services threatened by the current economic recession.

The board also is scheduled to adopt a proposed $194.6 million budget for next year. The spending plan, up 0.91 percent from this year, would raise local property taxes 1.78 percent, according to district officials.

Originally, William Floyd had planned to cut 21 jobs next year through a combination of layoffs, retirements and other staffing shifts. Vecchio said the district now plans to eliminate about a dozen positions - but none through layoffs.

"This was a difficult decision for us," said Karen D'Esposito, president of William Floyd's teacher union. "In the final analysis, both sides were able to work out an agreement that saves programs for our children. Good teachers who would have been lost will stay and our contract will continue for an additional year."

William Floyd's agreement has potential significance for other districts on the Island, which also face financial pressures. A recent Newsday survey indicated that most districts plan staff cuts next year - the first time that has happened since the early 1990s.

Vincent Lyons, Suffolk County representative for a statewide teachers union, called the decision by William Floyd teachers the "first significant concession" in his area in recent years. He added that he knew of no similar agreements in Nassau County.

Union representatives in Nassau could not be reached immediately for comment.

Lyons said he knew of five other districts in Suffolk where "serious" attempts are under way to renegotiate contracts. He noted that union leaders were concerned by this development, because much of the multi-billion-dollar federal stimulus package recently approved in Washington was intended to save jobs of local government workers such as teachers and police.

"The whole idea was to keep people working, consuming," said Lyons, regional staff director in Suffolk for New York State United Teachers. He went on to say that union concessions were possible in William Floyd because the district was willing to meet teachers halfway, rather than simply demanding givebacks as some other districts have done.

William Floyd serves 9,600 students in the Mastic- Shirley area of southern Brookhaven Town. The district's property and income wealth is less than half the state average.