Not Just Salary
The costs of an employee, regardless of what type, usually also involves additional expenses above and beyond just salary. Health coverage and retirement plans add to that, as the Contra Costa Times article cited points out.
As for math, if it is just this first payment they are remarking on, the figures come to a much more reasonable figure - 1.2m / 20 according to my calculations comes in closer to $60,000 in costs per year.
The Richmond/ West Contra Costa School District long ago gave up painting teachers lounges and gyms, buying most books and supplies for students, and nearly had to cancel art and music programs due to a lack of funding,
(Of course if you read the actual article, you'll notice it says 10 teacher salaries, but thats another math problem for another day.)