SB 438 – 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. Current law provides that the funding formula will be phased in through the 2011-2012 school year. This act phases the formula in through the 2009-2010 school year. Current law provides that current operating expenditures shall include, in part, any increases in state funding subsequent to fiscal year 2005, not to exceed 5%, per recalculation, of state revenue, received by a district in the 2004-2005 school year. This act removes the 5% limit on increases in state funding per recalculation. This act contains provisions that are also contained in SB 24 (2009), SB 25 (2009), and SB 831 (2008). MICHAEL RUFF