Proposed constitutional amendment could give Minnesota public schools more funds without raising taxes

Minnesota voters will decide November whether to change how the state distributes money from its Permanent School Fund, potentially sending more money to public schools without raising taxes.

The fund dates back to Minnesota's statehood in 1858, when the federal government gave the state land to generate revenue for public education. It is now worth about $2.3 billion.

The proposed constitutional amendment would change how the fund's earnings are distributed to school districts. Supporters say it would provide additional per-student funding while allowing the fund to continue growing.

"We are not draining the fund. We are not selling timber, but we are providing long-term sustainability," Sen. Mary Kunesh, DFL-New Brighton, said at a news conference launching the campaign.

If approved, schools would receive additional money based on enrollment. Districts could decide how to use the funding; from hiring teachers, to purchasing classroom materials to building maintenance.

The campaign supporting the amendment estimates it would provide about $33 more per student statewide.

For example, the campaign estimates Minneapolis Public Schools could receive about $2.9 million annually, while St. Paul Public Schools could receive about $3.2 million.

The exact amount would depend on the value of the fund and the number of students in each district.

School leaders say districts are facing rising costs and ongoing budget pressures.

Christine Tucci Osorio, superintendent of North St. Paul-Maplewood-Oakdale schools, said her district could receive about $345,000 a year if the amendment passes.

"There's a heck of a lot we can do," she said. "When I say every single dollar counts, I am not even kidding you."

Supporters also emphasize the proposal would not increase property or income taxes. The money would come from the existing trust fund.

Rep. Spencer Igo, R-Grand Rapids, called the proposal a bipartisan effort. The House approved it 134-0.

"This is a way for Minnesotans to do what they do best, and that's come together and support something really good for the future," Igo said.

The constitutional amendment will appear on the Nov. 3 ballot.

If approved, the change would take effect July 1, 2027, with the first increased payment to schools expected in September 2027.

The campaign has more information, including estimates for individual school districts, at Vote Yes MN Students.

Supporters say the change would not solve Minnesota's broader school funding challenges, but say it would provide another source of long-term funding for public schools.