Permanent School Funding – Understanding the November Ballot Question
Understanding Minnesota’s Permanent School Fund Ballot Question
By Liam Dawson, Superintendent, St. James Public Schools
By Karla Beck, Superintendent, Madelia Public Schools
By Dan Blankenship, Superintendent, Butterfield Public Schools
Minnesota voters will see a proposed constitutional amendment related to the Permanent School Fund on the November 3, 2026, general election ballot. Here are the key points voters should know.
What is the Permanent School Fund?
The Permanent School Fund is one of Minnesota’s oldest sources of public school funding. Established when Minnesota became a state in 1858, it was built from public lands set aside to benefit public education.
Today, the trust includes approximately 2.5 million acres of land and mineral rights on approximately 1 million additional acres. Revenue from timber sales, mining, leases and other activities is deposited into the fund and invested by the Minnesota State Board of Investment.
The fund already exists.
The Permanent School Fund is currently valued at approximately $2.3 billion. It has distributed approximately $388 million to Minnesota schools over the past 10 years.
What would change?
Currently, annual distributions are primarily based on the fund’s interest and dividend earnings.
The amendment would establish an annual distribution equal 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 provide greater stability and predictability from year to year.
What would not change?
- The Permanent School Fund would remain in place.
- School trust lands would remain in place.
- The fund would continue to support Minnesota public school students.
- The fund would continue to be managed as a resource for current and future generations.
- The amendment would not create or increase an individual income or property tax.
What could it mean for schools?
Based on 2025 figures, the average distribution was approximately $68 per student. Materials developed about the proposal estimate a potential distribution of approximately $91 per student under the new formula.
The estimated annual funding increases for the three public school districts within Watonwan County are:
- St. James Public Schools: $31,084.85
- Madelia Public Schools: $17,123.75
- Butterfield-Odin Public Schools: $6,091.23
Together, these estimates represent a potential increase of approximately $54,299.83 annually for Watonwan County’s three public school districts.
These figures are estimates, not guaranteed amounts. Future distributions would depend on the fund’s average market value, student enrollment and the distribution calculations established under state law.
When would the change begin?
If approved by voters, the new distribution formula would take effect July 1, 2027, for aid payable in fiscal year 2028.
What will appear on the ballot?
The ballot title will be “Increasing funding to school districts.”
The question 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?”
An important voting rule
A constitutional amendment must receive “yes” votes from a majority of all voters participating in the election. If a voter casts a ballot but leaves the amendment question blank, the blank response does not count as a “yes” vote and has the same practical effect on the passage calculation as a “no” vote.
The Minnesota Legislature approved placing this question before voters during the 2026 session. The amendment will take effect only if approved by Minnesota voters. This article is intended to provide information and does not recommend how residents should vote. Additional information is available at www.mnpsfamendment.org. The enacted legislation, 2026 Minnesota Laws, Chapter 114, is available through the Minnesota Office of the Revisor of Statutes.
