Mankato Area Public Schools Shares Information About Permanent School Fund Amendment

Minnesota voters will consider a proposed constitutional amendment related to the state’s Permanent School Fund during the Nov. 3 general election.

The Permanent School Fund dates back to Minnesota’s statehood in 1858, when public lands were set aside to generate revenue for public education. Revenue from school trust lands, including timber, mining, leases and other natural resource activities, is deposited into the fund and invested by the Minnesota State Board of Investment.

The fund has grown from approximately $1.3 billion in 2017 to $2.4 billion as of March 31, 2026. Its investment earnings are distributed twice each year to Minnesota public school districts and charter schools on a per-pupil basis.

During the 2025-26 school year, the Permanent School Fund distributed $63.8 million to the state’s 329 public school districts and 169 charter schools and academies. These dollars are provided in addition to general education aid and may support educational services such as instructional materials, curriculum, staff salaries, activities and school facilities.

If voters approve the amendment, Mankato Area Public Schools estimates the revised distribution method would provide approximately $265,000 in additional funding to the district.

Under the current system, annual distributions are based primarily on interest and dividend earnings. The proposed amendment would change the calculation to 4.5% of the fund’s average net asset value over the previous three fiscal years.

Using a three-year average is intended to reduce annual fluctuations and provide more predictable distributions. The proposed constitutional language also directs the state to preserve the fund’s purchasing power over time and balance the needs of current and future students.

The proposal would not create a new fund, establish a new government program or change the fund’s purpose of supporting public education. It would not raise individual income or property taxes. If approved, the new distribution method would take effect July 1, 2027, for aid payable in fiscal year 2028.

The ballot question will appear under the title “Increasing funding to school districts” and will ask:

“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?”

Under Minnesota law, failure to vote on a constitutional amendment has the same effect as voting no. Voters may select “Yes” to support the amendment or “No” to oppose it.

Official ballot language and voting information are available through the Minnesota Secretary of State at sos.mn.gov.