During the general election on November, 3rd, 2026, Minnesota voters will decide whether to modernize the way Minnesota’s Permanent School Fund (PSF) distributes revenue to public schools through a proposed constitutional amendment. Amending the PSF would not raise taxes, create a new tax, or establish a new funding source. But it will update how annual revenue from this existing education trust fund is distributed to better support Minnesota students, along with preserving the fund for future generations.
The 168 year-old Permanent School Fund was established in Minnesota’s Constitution when the state was founded in 1858. It was created using lands that had been granted to Minnesota specifically to support public education.
Today, revenues generated from school trust lands - including timber, mining, leases, and other natural resource activities - are invested through the State Board of Investment, creating a permanent source of support for Minnesota’s public schools.
Over the past decade, the fund has grown significantly from approximately $675 million in 2010 to more than $2.3 billion today. Constitutional restrictions that were written generations ago currently limit how much of that growth can be distributed to schools.
Following a comprehensive review by a nonpartisan working group, the Minnesota Legislature approved a constitutional amendment that would allow annual distributions to schools to be based on 4.5% of the fund’s three-year rolling average market value, rather than primarily on interest and dividend earnings alone. The current distribution rate is 2%2.5%.
Over the past decade, the fund has grown significantly from approximately $675 million in 2010 to more than $2.3 billion today. Constitutional restrictions that were written generations ago currently limit how much of that growth can be distributed to schools.
PFS funds are distributed to every public school district, charter school, and tribal school. In 2025, the per pupil distribution was around $68. If the amendment passes, future years distributions would be approximately 4.5% annually, meaning the per student amount would be an average of $101.
Voter approval is required to increase the per-pupil distribution rate.
There are several positive reasons to modernize distribution of the funds, including:
• Increasing annual distributions • Providing more predictable funding
• Preserving the long-term health of the fund
• Protecting future generations of students Amending the PSF distribution would provide the important benefits of:
• Additional support for students without raising taxes
• Provide greater predictability for school district budgeting and planning
• Continues local control over spending decisions
• Equitable distribution to districts statewide based on student enrollment This proposal is unique because it does not change the purpose of the Permanent School Fund.
What voters need to know is that, for Minnesota constitutional amendment votes, if a voter skips this question on the November ballot, it will be counted as a “no” vote.
For more information, visit the Minnesota Permanent School Fund Constitutional Amendment website at mnpsfamendment. org
