Minnesota voters could send more money to schools from perpetual fund this November

A billion-dollar school fund created when Minnesota became a state could soon send millions more to classrooms across Minnesota. 

Before that can happen, voters will have the final say this November.

This all centers on Minnesota's Permanent School Fund, a trust that's been supporting public schools since statehood. 

"This is a gift that was set up in 1785 and it is still operating and functioning as a part of our government to support education," Aaron Vande Linde, director of the Minnesota Office of School Trust Lands, said. "It's a perpetual trust. It's an intergenerational trust. So we work for not only the kids in school today, but the kids that will be in public school in 150 years." 

Lawmakers approved putting this constitutional amendment on the ballot last session, and now voters will decide whether Minnesota students will have access to more of that funding. 

The fund is worth $2.3 billion in financial assets and more than $12 billion when school trust lands and natural resources are included.

Right now, the Minnesota Constitution only allows schools to receive the fund's interest and dividend earnings. Supporters say that's kept distributions mostly flat, even as the fund has nearly quadrupled in value over the last 15 years.

Districts like Minneapolis, St. Paul, Anoka-Hennepin, Columbia Heights and Rosemount have resorted to staffing cuts and school closures as some parents rally to hike property taxes to supplement funding losses.

If voters approve the amendment in November, annual distributions would increase from roughly 2.5% to about 4.5% of the fund's value. That would increase funding to school districts by about 40%, with districts free to spend the money however they choose.

"The great thing about this fund is the school districts do not have any requirements to spend that money in any particular way, they can, it has no strings attached to it," Aaron Vande Linde, director of the Minnesota Office of School Trust Lands, said.

Supporters say the proposal would provide more money for schools without raising taxes. Opponents argue drawing more from the fund could reduce what's available for future generations.

If voters approve the amendment this November, schools would begin receiving the increased funding for the 2027-2028 school year. The money would still be distributed on a per-student basis, meaning every public school district would receive funding, with larger districts receiving more.