DES MOINES, Iowa (AP) — The governor has signed into law a $40 million plan linking teacher pay to performance, a measure meant to combat a looming teacher shortage.

Under the measure, signed by Gov. Tom Vilsack on Wednesday, local schools would set achievement goals for students in each building. In buildings where those goals are met, all staffers — not just teachers — would get a bonus.

In addition, beginning pay for most teachers will be increased by $1,500 a year.

"This is landmark legislation, but it certainly isn't finished yet," the governor said.

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The new system scraps a decades-old pay system rooted in seniority. It is expected to cost about $250 million after four years.

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