This fall, Minnesota voters will see a constitutional amendment on their ballots that directly impacts public education—without increasing taxes. Here is a brief guide to help you understand what the Permanent School Fund is, what changes are proposed, and how it affects our schools.
What is the Permanent School Fund?
Established when Minnesota became a state in 1858, the Permanent School Fund (PSF) was created to provide long-term, ongoing support for public education. Revenues generated from school trust lands (such as timber and mining) and investments are held in trust to benefit Minnesota students. Today, every public school district, charter school, and tribal school in Minnesota receives annual distributions from this fund.
Why is an Amendment on the Ballot?
Although the trust fund has grown significantly—from about $675 million in 2010 to over $2.3 billion today—outdated constitutional rules have restricted how much money can actually be distributed to schools each year.
The proposed constitutional amendment updates and modernizes the payout formula. By moving away from restrictive formulas and aligning with modern investment practices, the new formula would allow schools to receive increased financial support today while continuing to preserve and grow the trust for future generations.
5 Key Takeaways for Voters
- No Tax Increase: The proposal updates the distribution formula for an existing trust fund. It does not increase property, income, or sales taxes.
- Benefits Every District: All public school districts, charter schools, and tribal schools across Minnesota will continue to receive funding from the fund.
- Bipartisan Backing: The recommendation originated from a nonpartisan legislative task force and received broad bipartisan support in both the Minnesota House and Senate before being placed on the ballot.
- Dedicated to Public Education: The core purpose of the fund remains unchanged—it will strictly continue to support public education.
- Important Voting Rule: Under Minnesota law, a blank vote on a constitutional amendment counts as a "No" vote. If you skip the question on your ballot, it has the same effect as voting against it.
You can learn more about the MN Permanent School Fund via this website: https://www.mnpsfamendment.org/ As the election approaches, look for more information, including the potential financial impact to the NPAS, and how constitutional amendment questions appear on your ballot.