Minnesota school funding amendment faces November vote
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Minnesotans will decide this November whether to send more cash from a 168-year-old trust to schools across the state.
Why it matters: Supporters of the constitutional amendment, placed on the ballot with broad bipartisan support, say the proposal increases school funding without raising taxes.
State of play: The pot of cash in question — called the Permanent School Fund endowment — has grown at a rapid clip, thanks to strong stock market returns.
- The ballot question would increase the amount the state can withdraw each year from that $2.3 billion nest egg from around 2.5% to 4.5% of the fund's three-year rolling average.
What to expect: While the exact amounts will depend on the fund's future performance, supporters estimate that the change would have sent every public and charter school about $30 more per student this year.
- Unlike some other dedicated sources of K-12 funding, this cash can be used for everything from curriculum development and teacher salaries to maintenance and construction.
What they're saying: Budgets are so tight in the North St. Paul-Maplewood-Oakdale School District that expenditures so minor as printing in color generate "really rigorous conversations," Superintendent Christine Tucci Osorio told reporters.
- "So when I say this is not something to sneeze at, I really mean that. There's a heck of a lot we can do."
Catch up fast: The fund was created in 1858, when Minnesota became a state and the federal government gave it millions of acres of land to support public education.
- Revenue from timber, minerals and the sale or lease of the land itself go into the account.
- Some proceeds from the investments are then distributed twice a year to public school districts and charter schools.
Follow the money: The market value of the fund, managed by the Minnesota State Board of Investment, has ballooned by $1 billion since 2017.
- As a result, financial experts say the state can safely increase its annual withdrawals to 4.5% without hurting the fund's principal.
"We've managed these lands properly… and we've grown a fund that is going to take care not just of this generation of kids but the kids that are going to be in the future," GOP Rep. Spencer Igo said.
Yes, but: School leaders say the amendment alone won't fix the broader education funding challenges districts face as costs rise and enrollment falls.
- Dozens of districts are asking voters to approve additional levy increases to boost their coffers this fall.
Friction point: While no major opposition has emerged, supporters worry that voters overwhelmed by a high number of competitive races might skip the question.
- That could be a problem because, when it comes to constitutional amendments, ballots that leave the question blank count as a "no" vote.
"When I explain what's happening, so many people say, 'Well, yeah, this is a no-brainer, who wouldn't say yes to this,'" DFL Sen. Mary Kunesh said.
- "We're hoping that all of Minnesota picks up that attitude and vote 'yes.'"
What's next: If approved, the boosted payments would begin flowing to schools in September 2027.
Go deeper: See how much your district could get using this calculator.