The Birmingham Board of Education on Tuesday approved a $506,988,421 budget that includes pay increases for all employees and establishes a $15 minimum hourly pay rate.

The 2023 budget also includes additional pre-kindergarten classes, six new school psychologists and adjustments in the teacher salary schedule to make pay more competitive with surrounding school districts, according to a news release from the board.

“We value the contributions of all employees, and we recognize their desire for compensation that helps them take care of their needs while reaching personal goals,” Superintendent Mark Sullivan said.

All employees will receive the state’s 4% increase, and many teachers will have an increase in salary because of the district’s more aggressive pay schedule.

“We want to retain our current employees and attract others who are committed to preparing the next generation of leaders in our community,” Sullivan said.

The budget will be submitted to the State Department of Education this week, and changes will go into effect Oct. 1.

The board also said Tuesday that Sullivan’s evaluation for the 2022 school was favorable.