KENAI, Alaska (AP) — Officials with two labor unions say a strike is possible after negotiations with the Kenai Peninsula Borough School District deteriorated.

KSRM Radio reports the Kenai Peninsula Education Association and the Kenai Peninsula Educational Support Association say in a release that the most contentious issue is the high cost of health insurance for employees.

The labor unions represent various employees including teachers, custodians, nurses and food service staff.

The unions have been negotiating with the school district since February 2018.

A third-party arbitrator made recommendations on settling the dispute over health care costs.

The school district says in a release that union organizers turned down two proposals. The district rejected a best-offer proposal from the unions.