On November 3, Minnesota voters will consider a constitutional amendment that would change how the state’s Permanent School Fund supports public education. Here’s what school leaders should know about the proposal, its potential impact and the question voters will see on their ballots.
Minnesota’s Permanent School Fund has supported public education for more than 165 years. This November, voters will decide whether to amend the Minnesota Constitution to change how money from the fund is distributed to public schools.
The proposed amendment follows recommendations from a legislative task force that studied how to balance increased funding for today’s students with the long-term sustainability of the fund.
As Election Day approaches, here are five important things to understand.
1. What is Minnesota’s Permanent School Fund?
Established in 1858, the Permanent School Fund is a dedicated financial resource supporting Minnesota’s public schools.
The fund receives revenue generated by state school trust lands, including mineral royalties, timber sales and land leases. These revenues are invested by the State Board of Investment, and distributions from the fund help support public school districts and charter schools throughout Minnesota.
The fund has grown substantially over time, increasing from approximately $675 million in 2010 to more than $2.3 billion in recent years.
2. What would the amendment change?
Currently, the Minnesota Constitution generally limits distributions from the Permanent School Fund to interest and dividend earnings. Investment gains from increases in asset values generally remain in the fund.
The proposed amendment would establish a different constitutional framework for managing the fund. Accompanying legislation would implement an annual distribution equal to 4.5% of the fund’s average net asset value over the previous three fiscal years.
Historically, annual distributions have averaged approximately 2% to 2.5% of the fund’s value. The proposed formula is intended to provide a more consistent approach to determining annual distributions while accounting for changes in the fund’s value.
3. How much additional funding could schools receive?
According to updated informational materials from the Minnesota School Boards Association (MSBA), the average annual per-pupil distribution could increase from approximately $68 to an estimated $101.
That represents an increase of approximately $33 per pupil, or 49%.
These figures are estimates rather than guaranteed future payments. Actual distributions would depend on the fund’s value and the applicable distribution formula.
Permanent School Fund distributions are allocated to eligible public schools based on pupil counts, meaning the total amount received varies by district or charter school.
4. Would the amendment raise taxes or affect the fund’s future?
The amendment itself would not raise individual income or property taxes. Instead, it would change how money from the existing Permanent School Fund is distributed.
The proposal would also change the constitutional standards governing the fund’s long-term management.
The current Constitution contains explicit language protecting the fund’s principal. The proposed amendment would replace that language with requirements to manage the fund as a perpetual financial resource, preserve its purchasing power and balance the interests of current and future beneficiaries.
These provisions are intended to support the fund’s long-term sustainability while allowing additional distributions to schools. As with any investment fund, future performance and market conditions remain important considerations.
5. What will voters see on their ballots?
The proposed amendment will appear under the heading “Increasing Funding to School Districts.”
The 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?”
A Yes vote supports adopting the proposed constitutional amendment. A No vote opposes it.
Under Minnesota’s constitutional amendment voting rules, leaving the question blank has the same effect as voting No.
If approved, the amendment would take effect July 1, 2027.
Learn More Before November 3
The Minnesota Association of School Administrators (MASA) supports the proposed Permanent School Fund amendment as an opportunity to increase distributions to Minnesota’s public schools while establishing updated standards for managing the fund.
School leaders can help their communities understand the proposal by sharing accurate, factual information about the fund, the proposed changes and the ballot question.
For additional information and resources, visit:
- Permanent School Fund informational resources: https://mnPSFamendment.org
- MSBA Permanent School Fund resources: https://mnmsba.org/advocacy/permanent-school-fund/
- Minnesota Secretary of State — Constitutional Amendments: https://www.sos.mn.gov/elections-voting/whats-on-my-ballot/constitutional-amendments/
Election Day is Tuesday, November 3, 2026.
