When you see your ballot for the November 3rd election, you will be asked to vote Yes or No for an amendment to the Permanent School Fund. I only learned of this fund about 6 months ago and needed to research it for my own voting decision. Now that I have a better understanding, here is what I have learned and will give some resources for you to explore to help you make your decision regarding this vote. I don’t claim to know this with 100% accuracy but here goes.
From the DNR website, “Minnesota’s School Trust consists of the lands granted to the State by the federal government and the proceeds from the lands that are held in the Permanent School Fund (PSF). The PSF was established by the Minnesota Constitution to guarantee a long-term source of funds for public education. The net interest and dividends from PSF investments support K-12 public education through annual distributions to every public school district within the state.”(https://www.dnr.state.mn.us/aboutdnr/school_lands/school-trust-lands-projects.html and https://mn.gov/school-trust-lands/beneficiaries/)
Currently, public schools receive 2.5% of only the interest and dividends of this fund annually. This amount is stated in our state constitution and cannot be changed without voters approval. Over time, the funds have been invested and thus the total amount has increased to approximately $2.3 billion today. The proposed amendment would allow schools to receive more funding by increasing the distribution amount to 4.5% of a 3 year rolling average of the total market value of the fund (not just interest/dividends). The amendment also changes the distribution policy as new wording states that it will be “prescribed by law” becoming statute managed by legislators, with the possibility of legislators making future changes without Minnesota voter input. As I understand it, this is one of the primary concerns that critics of the amendment have… we would be changing the MN Constitution and giving more control to future legislators. However, sources are claiming that the amendment maintains protections over the principal amount of the fund and it must be kept protected as a “perpetual resource” to “preserve the purchasing power of the fund.”
From Rep Tom Sexton’s FB page on 9/18/2026: “Minnesota’s Permanent School Fund dates back to statehood in 1858, when land was set aside to benefit public education. Revenue from those school trust lands is invested in the Permanent School Fund, with distributions currently going to Minnesota’s public school districts and charter schools. The fund has grown from approximately $675 million in 2010 to more than $2 billion today. The proposed constitutional amendment would change how distributions from the fund are calculated. Under current law, distributions are based on interest and dividends earned by the fund. If approved, the new system would provide annual distributions based on 4.5% of the fund’s average net asset value over the preceding three years. Using a three-year average is intended to help smooth fluctuations in investment markets. Importantly, this would not create a new tax. The ballot question specifically states that the amendment would increase funding from the Permanent School Fund without raising individual income or property taxes. The proposed constitutional language would also require the fund to remain a perpetual financial resource for schools, preserve its purchasing power over time, and balance the needs of current and future beneficiaries. If approved by voters, the changes would take effect July 1, 2027, for aid payable in fiscal year 2028.”
A few informational websites:
https://voteyesmnstudents.org/
This site reports that Owatonna Public Schools received $332,506.31 from this fund in 2025 and with approval of the amendment, this will increase to $493,465.13. Our current annual budget is about $80 million, so while this increase will not offset any major expenditures or deficits in the coming years, it can make an impact.
https://www.mnpsfamendment.org/what-would-change
Basically, the amendment appears to be one avenue to increase school funding without increasing our taxes. The primary concern with it is regarding the control and future decisions with the fund given that legislators will have more authority over it. Interestingly, it’s worth noting that this amendment was created by a nonpartisan task force and approved 100% in the MN House. My goal is not to tell you how to vote, but to provide information so that you can read and decide for yourself. Hope this helps a bit.
Soli Deo Gloria!
