As we approach the upcoming general election, voters across Minnesota will be asked to consider a proposed constitutional amendment that directly impacts public education funding. If passed, it would bring nearly $100,000 of revenue to the Fergus Falls Public School District without raising taxes. Because constitutional amendments can be complex, I want to take this opportunity to share clear, educational information on what this measure involves, how the fund works, and where you can find official details before casting your ballot.
What is the Permanent School Fund?
The Minnesota Permanent School Fund is an existing, constitutional trust fund that has supported Minnesota’s public school students since statehood. Established in 1858 from federal land grants dedicated to education, the fund generates revenue through timber sales, mining leases, land management, and financial investments managed by the State Board of Investment.
Currently, the fund holds more than $2.3 billion in assets. Each year, distributions from this fund are apportioned to every public school district in Minnesota to support everyday operational budgets.
What is the Proposed Constitutional Amendment?
Under the current Minnesota Constitution, annual distributions to school districts are limited primarily to net interest and dividend income, requiring the nominal principal to remain untouched.
The proposed constitutional amendment asks voters whether to modernize this distribution formula. Instead of relying solely on interest and dividends, the proposed change would transition to a total-return investment model—allowing annual distributions based on 4.5% of the fund’s three-year rolling average market value.
Key details of the proposed measure:
No Tax Impact: The amendment does not create a new tax, nor does it increase existing state individual income taxes or local property taxes.
Statewide Distribution: Funding would continue to be distributed to all public school districts across the state based on existing allocation formulas.
Preserving Purchasing Power: The update is designed to better protect the fund against inflation while providing higher, more predictable annual funding to local classrooms.
Effective Date: If approved, statutory updates enacted by the Legislature would take effect on July 1, 2027.
What Would this Mean for Fergus Falls Public Schools?
It means the district would receive additional financial resources to support our students. If the Permanent School Fund Constitutional Amendment were in place in FY 2025, the estimated financial impact to the Fergus Falls Public School District is $99,406.89.
What Will You See on the Ballot?
When you review your ballot, the constitutional amendment question will read as follows:
"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?"
Important Voting Information for Minnesotans
Under Minnesota law, constitutional amendments are subject to specific voting rules:
To pass, a constitutional amendment must receive a "Yes" vote from a majority of all voters casting a ballot in the election, not just a majority of those who vote on the specific question.
Leaving the constitutional amendment question blank on your ballot has the same practical effect as a "No" vote.
Official Resources & Further Reading
For nonpartisan details, full legal texts, voter guides, and official election logistics, please refer to government and educational association resources:
To check your voter registration status, view a sample ballot, or review state constitutional amendment instructions, visit the Minnesota Secretary of State Election Portal.
To learn more about how trust lands and investments are managed, visit the Minnesota Office of School Trust Lands and the Minnesota State Board of Investment.
For additional educational materials prepared by school leadership groups, you can review information from the Minnesota School Boards Association or the Association of Metropolitan School Districts.
Thank you for staying informed and engaged in the decisions that shape public education in Minnesota.