Blue Earth Area School District

What Minnesota Voters Need to Know About the School Fund Amendment on the 2026 Ballot

When Minnesotans head to the polls this November, they will see a constitutional amendment designed to send more money to local public schools - without raising taxes.

Here is a straightforward guide to what the Permanent School Fund is, what the ballot proposal actually changes, and why it matters for local students.

What Is the Permanent School Fund?
Think of the Permanent School Fund (PSF) as a massive, legacy savings account for Minnesota’s public education.

▪️The Origin: Created when Minnesota became a state in 1858, the federal government set aside millions of acres of land to help fund public schools.

▪️How It Earns Money: Revenue generated from timber harvesting, mining operations, and land leases on trust land goes directly into the fund.

▪️Who Manages It: The principal balance is invested by the Minnesota State Board of Investment.

▪️Who Benefits: Every public school district, charter school, and tribal school in Minnesota receives a payout twice a year based on student enrollment.

Over the years, the trust’s value has grown dramatically, climbing from roughly $675 million in 2010 to over $2.4 billion today. However, payouts to schools have stayed comparatively low due to outdated rules written into the state constitution decades ago.

What Changes on the 2026 Ballot?
The proposed constitutional amendment updates the rulebook for how money leaves the fund and reaches the classroom.

Under the existing model, schools only receive payouts generated strictly by interest and dividends, yielding roughly 2.5% of the fund. The amendment modernizes this formula to a standard percent-of-market-value model, releasing 4.5% of the fund's average value (calculated across a three-year rolling period to smooth out stock market ups and downs).

The Direct Impact on Schools
▪️More Cash Per Student: Payouts are projected to jump from roughly $68 to an estimated $101 per pupil each year.

▪️No Tax Increase: Because the extra funding comes directly from earnings on an existing multi-billion-dollar endowment, passing the measure will NOT raise local property taxes, state income taxes, or sales taxes.

▪️Equal Distribution: Funds will continue to go directly to all traditional public districts, charter schools, and tribal schools across the state.

Key Takeaways for Election Day
1. Broad Bipartisan backing: The proposal came out of a nonpartisan task force that studied the fund's limitations, earning unanimous support before passing both the Minnesota House and Senate with strong bipartisan majorities.

2. Constitutional Requirement: Because the original 19th-century formula is written into the Minnesota Constitution, state lawmakers cannot adjust it on their own, only voters can.

3. Leaving It Blank Counts as a "No": In Minnesota, a constitutional amendment must be approved by a majority of all voters participating in the election. If you skip the question on your ballot, it automatically counts mathematically as a "No" vote.

4. Current vs. Future Needs: The new 4.5% rolling-average design is engineered to deliver immediate relief to today's classroom budgets while ensuring the overall endowment continues to grow for future generations.