SB 139 – This act modifies the elementary and secondary education funding formula. It removes from the calculation of the state adequacy target the inclusion of the gaming revenues from the repeal of the loss limits. Instead, the gaming revenues from the repeal of the loss limits will be distributed for teacher salaries, early childhood, and transportation purposes. This act creates the Minimum Salary for Teachers Program and establishes procedures for qualifying school districts to receive funds to pay minimum salary supplements to teachers. A minimum salary supplement is the difference between a school district's salary schedule and the minimum salary identified in the act. Beginning with the 2010-2011 school year, money from the Schools First Elementary and Secondary Education Improvement Fund will be transferred to the Minimum Salary for Teachers Fund to pay public school teacher minimum salary supplements to qualifying school districts. A participating school district is only responsible for the contracted amount of a teacher's salary. If there is insufficient money to pay the total cost of all minimum salary supplements, the minimum salary amounts will be prorated. To qualify for funds, school districts must recognize all years of a teacher's teaching experience in accordance with the salary amounts and education levels identified in the act. A participating school district is also subject to a local effort requirement, which is based on the percentage of expenditures from the district's teachers and incidental funds attributable to base salary, retirement, and health care costs as described in the act. A district may vary from its local effort percentage based on its teacher and incidental fund balance. A district that varies more than the allowable percentage will have a deduction made from the minimum salary supplement in the next fiscal year. Any future increases in minimum salaries are contingent on decreases in total state payments to all districts as described in the act. The value of each level of minimum salary will be increased by $500 in the second fiscal year following the fiscal year in which the state cost of funding the minimum salaries is 85% or less of the full funding cost for the first school year of the state funding of minimum teacher salaries under the act. This act requires that an amount of money sufficient to fund the Minimum Salary for Teachers Program be transferred from the Schools First Elementary and Secondary Education Improvement Fund to the Minimum Salary For Teachers Fund. Any remaining money will be evenly divided between and distributed to the Missouri Preschool Project and school districts for transportation costs. The transportation funds will be distributed based on a school district's weighted average daily attendance calculation in proportion to the weighted average daily attendance calculation for the entire state. This act contains provisions similar to SB 1092 (2008). MICHAEL RUFF