NORTH ANDOVER — Despite protests from selectmen and the Finance Committee, the School Committee last night approved a one-year contract giving teachers a 1.9 percent pay hike this year on top of their annual step increases.

School Committee members said they could cover the raise within their budget, and dismissed arguments from town officials that more state cuts might be on the way this fiscal year, saying it's next year that will be tough.

The four dozen or so teachers who packed the high school lecture hall broke out in applause at the committee's decision.

"Our teachers have actually been our bedrock ... through it all they've stuck it out with us," member Stanley Limpert said. "And we continue to demand more of them all the time."

Members Chris Nobile, Chris Allen, Barbara Whidden and Limpert voted for the raise. Member Chuck Ormsby and Selectman Mark Caggiano voted against it.

Caggiano said the schools might have money to cover the 1.9 percent in this budget, but that next year could be a different story.

"We're really unclear right now that there's going to be money available next year," Caggiano said. "I think we're in very serious times. ... We're going back to an economy where we're talking 1929, not the late '80s, early '90s."

Mark Rodgers, vice-chairman of the Finance Committee, said the latest numbers he is seeing are bleak.

"We are looking at some variety of a train wreck financially," Rodgers said. "We are looking at severe, severe cuts or severe cuts, depending on how we act."

The Finance Committee, as well as selectmen, voted to recommend that the School Committee reject the contract and go back to the negotiating table.

Selectmen earlier this week settled contracts with the public works and librarian unions which agreed to go without raises this year.

Selectmen are still negotiating with the police and fire unions.

School Committee member Christopher Nobile argued that the raise is less than what other neighboring districts like Andover and Methuen have negotiated. Methuen just signed off on a three-year, 9 percent raise for teachers, he said.

Nobile said some increase was important in retaining skilled teachers.

"I am comfortable in endorsing this," he said.

The average pay for a North Andover teacher is $54,773, compared to the state average of $58,257, according to the Department of Education Web site.

North Andover teachers received 3 percent raises every year in their 2005-2008 contract.

The School Department will pay for the 1.9 percent increase — which totals $344,770 — drawing from $608,446 authorized at last Town Meeting for school contract negotiations.

The School Committee negotiated a one-year contract so the town's Insurance Advisory Committee would have time to come up with a better health care plan for all town employees before settling a longer-term contract. Contracts typically cover three-year periods.

Ormsby said the 1.9 percent would "undermine the fiscal health of North Andover," because the schools will have to come up with the extra money every year from now on.

"It's not one year, it's forever," he said.