CHICAGO – Chicago school officials say they've come up with a plan to pay for the first year of a new teacher contract.

Officials say salary increases will amount to $103 million in the first year of the three-year contract ratified this week by Chicago Teachers Union.

The plan released on Friday doesn't include classroom cuts. Instead, most of the money will come from restructuring debt, selling surplus properties and capitalizing interest from a bond sale. The rest will come from reducing costs and not filling non-teaching vacancies.