The proposal was negotiated between district leaders and representatives of the union Scotts Valley Education Association, according to the union's President Ann Codd, who teaches at Brook Knoll Elementary School.
Codd said she supports the plan that includes doubling some insurance co-payments to $40.
The two non-paid days off are "professional development" days for teachers, not instructional days, which reduces the impact to students' education, Codd said.
The deal is expected to save the district more than $200,000 a year, she said.
"I think it's a fair deal to show our support for the district," Codd said. "Increasing the co-pay is unfortunate, but it's a prudent move for the district."
Like every district in the state, Scotts Valley is faced with chopping $330 per student from its budget to balance funding cuts from the state.
Though the state's finances have improved since a dire forecast in January, school districts are still being asked to plan for a reduction of roughly $330 per student each year.
Gov. Jerry Brown announced in the budget update in May that he would keep education for the 2011-12 school year funded at a "flat level," essentially the same amount as the past year.
The four-school Scotts Valley district has already increased elementary class sizes and trimmed services and programs in the past year to handle ongoing funding cuts from the state.
A handful of classified employees were given layoff notices at the May 24 school board meeting, mainly part-time instructional assistants, school clerks and administrative assistants.
"For us, it's a matter of how we make the bottom line fit," Trustee Michael Shulman said.
District trustees plan to adopt a final budget for the 2011-12 school year at their meeting June 21.
In addition to budget woes, the district has received 18 applications from candidates to replace retiring Superintendent Susan Silver.
The board of trustees will meet with the executive firm Leadership Associates, hired to conduct the superintendent search, next week to narrow the candidates to about five who will be interviewed the week of June 20.