Permanent School Fund

EVERY MINNESOTA PUBLIC SCHOOL STUDENT IS PART OF A TRUST FUND.

This fall, Minnesotans have the opportunity to vote to update our state's constitution to pass an amendment to improve how Minnesota's Permanent School Fund supports students, schools, and communities.

Without increasing existing taxes or costing Minnesotans more money.

What is the Permanent School Fund?

This November, Minnesota voters will consider a constitutional amendment related to the Minnesota Permanent School Fund (PSF). As part of our commitment to keeping stakeholders informed on issues affecting public education, we want to provide an overview of the proposed amendment.

The Permanent School Fund was established when Minnesota became a state in 1858 and is one of the oldest sources of funding for public education in the state. Today, the fund has grown to more than $2.3 billion through revenue generated from school trust lands and investment earnings and provides annual distributions to every public school district, charter school, and tribal school in Minnesota.

By 1900, many of the original acres in the southern part of the state had been sold. State policy then shifted to preserving remaining lands for the long-term interest of Minnesota’s Public School students.

In 2024, Minnesota Legislature establishes nonpartisan task force to evaluate and make recommendations to the legislature.

January 2026, the permanent school fund task force reported their recommendations to the legislature.

In May of 2026, The Minnesota House and Senate passed legislation to update how the Permanent School Fund is distributed.

Voter Information

The Amendment

WHAT THE AMENDMENT DOES
What would Change? And Why?

Passage in the Minnesota Legislature was only the first step in trying to update the trust distribution language. Since the trust distribution language is enshrined in the constitution, this now heads to Minnesota’s voters as it requires the majority of Minnesota’s voters for passage.

Currently

2-2.5% annual distribution
Interest and dividends only
Around $68 per pupil per district in 2025

Proposed

Estimated 4.5% annual distribution
Includes full market value
Estimated average of $91 per pupil per district

This recommendation preserves the fund balance for future generations of public school students and increases distributions for current students.

No existing taxes are increased, no new taxes and every public, charter and tribal school benefits.

When and where can I vote?

The Ballot Question

WHAT WILL VOTERS SEE ON THE BALLOT?

The official ballot question reads:

“Shall the Minnesota Constitution be amended to increase the funding going to all school districts from the permanent school fund, which is a fund that supports school districts without raising individual income or property taxes, effective July 1, 2027?”

If approved, the amendment would allow Minnesota to distribute up to 4.5% of the Permanent School Fund's average value each year to public schools.

A nonpartisan task force believes this approach better reflects modern investment management and would provide additional support to public school students across Minnesota.

What if I don't vote?

What a "yes" vote means:
A yes vote approves the constitutional amendment and allows the updated distribution formula to take effect beginning in 2027.

What a "no" vote means:
A no vote keeps the current constitutional language and current distribution framework in place

CRITICAL VOTER INFORMATION!

In Minnesota, constitutional amendments require a majority of all voters participating in the election to vote yes.

If a voter leaves the question blank, it counts as a no vote.

Why is this on the Ballot?

Minnesota's Permanent School Fund was created nearly 170 years ago. While the fund has grown significantly over time, the way money is distributed from the fund has not kept pace with modern investment practices.

The constitutional amendment would allow Minnesota to modernize the distribution formula so more earnings from the fund can support students today while continuing to preserve the fund for future generations.

Top Ten Quick Facts to Know

THE PERMANENT SCHOOL FUND HAS EXISTED SINCE 1858
It was created when Minnesota became a state to provide long-term support for public education.
THE FUND ALREADY BENEFITS PUBLIC SCHOOLS
Every public school district, charter school, and tribal school currently receives funding from the fund.
THE FUND HAS GROWN SIGNIFICANTLY
The fund has grown from approximately $675 million in 2020 to more than $2.3 billion today, but distributions have not kept place because of outdated constitutional restrictions.
THE AMENDMENT IMPROVES THE DISTRIBUTION FORMULA AND DOES NOT RAISE TAXES
The proposal simply updates how annual distributions are calculated. It does not increase property taxes, income taxes, sales taxes, or any other tax.
THE FUND REMAINS DEDICATED TO PUBLIC EDUCATION
The amendment does not change the purpose of the fund.
EVERY DISTRICT WILL BENEFIT
Funding would continue to be distributed to ALL school districts, charter schools, and tribal schools throughout Minnesota.
THE PROPOSAL RECEIVED BROAD BIPARTISAN SUPPORT
The recommendation originated from a nonpartisan task force established by the Minnesota Legislature to study the Permanent School Fund. Following its review, the task force unanimously recommended modernizing the distribution formula. The proposal then received strong bipartisan support in both the Minnesota House and Senate before being paced on the ballot.
VOTER APPROVAL IS REQUIRED
Because the current formula is contained in the Minnesota Constitution, votes must approve any changes.
A BLANK VOTE IS A NO VOTE
For Minnesota constitutional amendment votes, if a voter skips this question, it is counted as a "no" vote.
THE GOAL IS TO SUPPORT BOTH CURRENT AND FUTURE STUDENTS
The proposal was developed to increase support for today's students while maintaining the fund as a long-term resource.

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