New London taxpayers and those in the private sector who have seen little or no pay increases in recent years may look warily at the three-year contract negotiated with public school teachers in the Whaling City, given that it provides for 3 percent salary increases in each of the next three years.

The deal, however, is a sound policy decision.

New London is undertaking a major transition of its public schools. Under the innovative approach, schools at all education levels will become magnet schools, centered on focused curricula — such as science and technology, the arts, and dual language — and integrating students from surrounding communities.

Housed in new or renovated facilities, city schools will become more racially and economically diverse, attract greater state aid and, if successful, raise the achievement bar for all students.

It all starts, however, with attracting and retaining good teachers. New London has had trouble retaining teachers, many finding jobs at higher pay in neighboring suburban schools. New London had a 21 percent teacher turnover entering this school year.

Lowering those teacher turnover rates will be critical in making a successful transition to what will essentially be a regional school system. Aside from being fundamentally good for students and families, an improved school system will bolster real estate values. From that perspective, it is a sound strategy to invest in teachers.

It will be a challenge for the Board of Education and Superintendent Manuel J. Rivera to manage resources wisely so that spending is held down in other areas even as teacher salaries increase. The school system will realize some savings due to an agreement with the New London Education Association, representing teachers, to boost employee contributions toward the cost of health insurance.

Dr. Rivera also needs to use effectively the teacher evaluation system launched several years ago. Its intent is to assure teachers are performing well in the classroom. When weaknesses are detected, teachers must get the help necessary to improve.

For several years New London flat funded its school system, a mistake that Dr. Rivera said “caused considerable harm, to the district overall, and especially to our ability to attract and retain highly qualified teachers.”

The agreed upon pay raises are a necessary step towards repairing that harm.