The contracts for one permanent and one semi-permanent teacher were canceled Monday during a special meeting for the Hanover Community School Corp. board.
Action on an unspecified number of non-permanent teaching contracts was delayed until June 8.
The two teaching positions eliminated were in art and physical education and become effective at the end of this school year.
The decision to delay action on the reduction in force of the non-permanent teaching contracts was due in part to concessions reached earlier this month between the school board and teacher's union.
"I'd like to thank HOPE and the Hanover teachers for working with us in making changes to the contract," "Superintendent Carole Kaiser said.
The changes will result in an additional $60,000 in savings during 2010, bringing the school corporation closer to the $500,000 in budget reductions needed to make up for the state shortfall in funding.
Kaiser said after the meeting the two key concessions are a two-day reduction in pay for all teachers and a 10 percent across-the-board cut in pay for all extra-curricular activities including clubs and athletics.
The two-day reduction will result in between $41,000 and $42,000 in savings while the reduction in extra-curricular pay will equal about $20,000.
Under the agreement, the number of classroom days will remain the same, but teachers will have two paid planning days eliminated from the school schedule, Kaiser said.