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By CARL MANNING
Associated Press Writer

TOPEKA -- As legislators look for more money to help finance higher school spending, gambling legislation is being prepared for introduction in the Senate late next week.

''We want to get as close to the final version as possible before we introduce it,'' Senate President Steve Morris said Friday. ''We want to discover any pitfalls before introducing the bill.''

Morris, R-Hugoton, said he believes there is enough support for the bill, but added, ''That's a moving target sometimes.''

Final details were being worked out, but all indications are the measure will be similar to a proposal the Senate rejected during a special session last summer, when supporters were four votes short of the 21 needed for passage.

''It's still a work in progress,'' Morris said. ''We have some general parameters, but we are fine-tuning it.''

He said 75 percent of the state's take -- estimated at nearly $300 million -- would go to the state general fund to be used for education, while the remaining 25 percent would provide local property tax relief.

The proposal calls for two casinos, one in Wyandotte County, which includes Kansas City, Kan.; and one in southeast Kansas. It also allows slot machines at horse and dog tracks in Kansas City, Wichita and Frontenac and permits slots at Dodge City, if the town ever constructs a pari-mutuel track.

Local voter approval would be required in all locations except Crawford County before gambling could start. Crawford County voters approved a nonbinding resolution in favor of gambling last year.

The proposal calls for 7,000 slot machines divided among the tracks, which would have to pay the state $15,000 per machine up front. The upfront payment would be deducted from the amount owed the state in future years.

Casino managers would pay $35 million up front before they could open their doors, and they would have to invest at least $200 million in the project, according to an outline of the proposal.

The state would own the casinos and slots through the Kansas Lottery Commission and would hire a company to operate them.

Since taking office in 2003, Gov. Kathleen Sebelius has pushed casino gambling to raise money for state programs.

But in previous years, gambling bills have died as they were expanded to include more locations or gambling promoters fought over dividing the pie or for a larger share of the profits.

''In the past, gambling bills have been drafted by the industry. This year it's being drafted by legislators,'' said Senate Minority Leader Anthony Hensley, D-Topeka.

This year, lawmakers also are trying to find additional money without raising taxes to comply with Kansas Supreme Court orders to increase school funding to meet constitutional mandates. House leaders are proposing a plan to phase in a $500 million increase over three years.

''People aren't willing to raise taxes, so this is the only viable alternative,'' Hensley said. ''The reality is people are frustrated we have gaming in Kansas but the state's not deriving any revenue from it.''

Sebelius said budget projections show that if the state attempts to increase education funding without new revenue, ''You don't get very far down the road.''

''I'm hoping that we have a gaming bill that will be considered along with the school finance bill,'' she said. ''I think that's the best option for new revenue.''

Aside from the state lottery and horse and dog tracks, there are four Indian casinos in Kansas. There are four casinos in Kansas City, Mo., one in St. Joseph, Mo., and 10 Indian casinos in northeast Oklahoma.

''It looks like we're going to pass an education bill that spends more money than we have, and it has to come from somewhere,'' said Senate Majority Leader Derek Schmidt, R-Independence. ''This is the year we need to make a decision. Those on the fence need to get off and say yes or no.''

Once introduced, the bill will go the Senate Federal and State Affairs Committee, where Chairman Pete Brungardt said members will review the bill in a couple of weeks and then vote on it.

''The fact is that it's been around a few years. The people are over the shock value and realize the probable benefits,'' said Brungardt, R-Salina. ''There's an income stream we could realize. It isn't lost on folks that we're where we need more income.''

Not every senator thinks expanded gambling is a good idea. Sen. Les Donovan said it causes social problems like gambling addiction.

''It's a lose-lose-lose deal,'' said Donovan, R-Wichita. ''It works for a few people owning the casinos, but it doesn't work for the people in the street.''

Likewise, Sen. Nick Jordan, R-Shawnee, doesn't think much of it.

''We have better ways to grow our economy,'' he said.

It will be up to the Senate to get the ball rolling on the issue. House Majority Leader Clay Aurand, R-Courtland, said his chamber hasn't talked about gambling this year, adding, ''We're not doing anything until the Senate passes something.''