Lynn Thompson:

The Bellevue School District increased its salary offer to teachers in a late-night bargaining session Thursday.
The total pay raise would be 5 percent over the three-year contract.
Union officials praised the move and said they planned to hold an “optimism” rally at Crossroads Park in Bellevue today while bargaining was expected to continue.
“It’s a move in the right direction,” said Michele Miller, Bellevue Education Association president.
The school district initially offered teachers 3 percent in wage increases over the three-year contract but raised the offer to 4.5 percent last week, saying the increase was contingent on voter approval of a levy in the third year of the contract.

Bellevue, WA Teacher Salary Schedule with 2008-2009 District Offer: 16k PDF
Curriculum is also an issue in this strike [32K PDF]:

Language Arts 4th – 12th grade: Many teachers believe there far too few lessons on punctuation and grammar. You cannot add lessons in these areas, since that might supplant the scripted lesson goal of the day.

Middle School Math: Since the district only allows one level of math at each grade in Middle School, there are many bored and overwhelmed students simultaneously stuck in the same class. The District’s current curriculum proposal wouldn’t allow a teacher to develop entirely new topics of instruction to engage the bored students. Additionally, while teachers would be allowed to make small adjustments for struggling kids, they couldn’t use those changes the following year without the approval of the Curriculum Department.

Certainly, Math and writing skills are fertile ground for curriculum controversy.
I asked Madison’s three superintendent candidates earlier this year if they supported a “top down” curricular approach or, simply hiring the best teachers. It’s hard to imagine a top down approach actually working in a large organization.