PEORIA, Ill. (WMBD) — Tension continues over contract negotiations between Peoria Public Schools and the Peoria Federation of Teachers.

Tuesday, representatives with PPS and the teacher’s union met for negotiations with a federal mediator. After hours of discussions, that meeting ultimately ended without an agreement in place.

“We went in hoping for some positives but it did not take too terribly long for things to break down,” said Jeff Adkins-Dutro, Peoria Federation of Teachers president.

The teacher’s union won’t share the specifics of the discussions, but among the issues that they want to address are student discipline, attendance, and alternatives to social promotion.

One of the biggest items within contract talks is teacher pay.

“The dollar amount that we’re apart here with contract negotiations, you’ve got the money, and you will be okay in the future to take care of the teachers. We’ve got to do something to retain teachers that we have, recruit new teachers, and boost morale,” said Matt McCaw, Peoria Federation of Teachers bargaining chair.

Following Tuesday’s meeting, the teacher’s union released a statement claiming they were misled about millions of dollars in Corporate Personal Property Replacement Taxes the district received.

McCaw said the district brought in nearly $20 million dollars more in these taxes than they budgeted for.

“For years in this district what we heard was, we’d like to be able to pay you more, we simply don’t have the funds,” McCaw said. “Guess what, now the district has the money,” he added.

After months of negotiations without a contract, union leaders said all options are on the table.

“The mediator said it best, really nobody wins if there’s a strike, but I would say yes, there’s a possibility,” Adkins-Dutro said.

As negotiations continue between the two sides, Peoria School Board President Martha Ross had some harsh words for the union’s talk of a strike Wednesday morning.

“The current board proposal calls for a salary increase that is among the highest in the state and attempts to keep teacher salaries matching rate of core inflation. Thus, the Union’s talk of a strike is not only premature but is an irresponsible attempt to mislead the public and its own members as to what the Board is offering at the negotiations table.”

Martha Ross, President of Peoria Public Schools Board of Education

School board member Greg Wilson responded to negotiations by saying Peoria teachers are valued, and both sides must come together because there are students depending on it.

“There’s a lot of giving and receiving on both sides, on both ends, but I’m very confident that we can get a deal done,” Wilson said.

While no new agreement was reached Tuesday, another mediation session is scheduled for Sept. 7. Peoria Public Schools administration has declined to comment on the matter.