Statewide School Funding On the Ballot This Fall; No New Taxes

Minnesota voters will decide this fall whether to change how money from the state’s Permanent School Fund is distributed to public schools. If approved, the change would provide additional funding to public school districts, including Spring Lake Park Schools. It would not increase taxes. 

Will this raise taxes? No. 

No. The proposed amendment would not increase property taxes, income taxes, sales taxes or other taxes. Instead, it would change how money already held in the Permanent School Fund is distributed to public schools. 

What could this mean for Spring Lake Park Schools? Approximately $200k 

If the amendment passes, Spring Lake Park Schools is expected to receive about $33 more per student, or approximately $200,000. 

The funding would be distributed based on the number of students in each school district. The change would take effect July 1, 2027. 

What exactly is the Permanent School Fund? 

Minnesota created the Permanent School Fund when it became a state in 1858. The fund was created to provide ongoing support for public education. 

Today, the fund is worth more than $2.3 billion. It earns money from school trust lands and investments. Revenue from the land comes from activities such as timber harvesting, mining, leases and easements. 

The fund is intended to support students today while also being protected so it can support students in the future. 

Every public school district and charter school in Minnesota receives money from the fund. 

What is the ballot question? 

The question asks voters whether to change the Minnesota Constitution to increase the amount of funding distributed from the Permanent School Fund to school districts. 

The official ballot question is: 

“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?” 

The proposed amendment would change how the annual distribution from the fund is calculated. 

Leaving the question blank has the same effect as voting No. 

Why is a constitutional amendment needed? 

The current rules for distributing money from the Permanent School Fund are included in the Minnesota Constitution. Changing those rules requires a constitutional amendment approved by voters. 

A bipartisan legislative task force studied the fund and recommended changing the distribution method. The proposal would distribute 4.5% of the fund's average value over the previous three years. 

This type of approach is commonly used by other long-term funds, including some college endowments. The goal is to provide more funding for students while continuing to protect the fund for future generations. 

How does the fund support schools? 

The Permanent School Fund includes about 2.5 million acres of land and 1 million acres of mineral rights. The Minnesota Department of Natural Resources manages the land. The State Board of Investment manages the fund's investments. 

Money earned from the land and investments is added to the fund. A portion of the fund's earnings is then distributed to public schools across Minnesota. 

Learn more about Statewide School Funding On the Ballot This Fall

For the official ballot language, frequently asked questions, background information and voter resources, visit www.mnPSFamendment.org. You can also find information about constitutional amendments on the Minnesota Secretary of State's website.