The ballot question headed to Minnesota voters this fall would amend the state constitution to allow public schools to draw a larger share from the Permanent School Fund, a $2.3 billion trust that has been accumulating revenue from state-owned lands since Minnesota achieved statehood in 1858. The proposed change does not raise property taxes or require any new local levies, according to its bipartisan sponsors.
The fund’s annual distributions to school districts are currently capped at roughly 2.5% of its value. A state task force that reviewed the fund in 2024 calculated average investment returns of 8% over the last decade, leaving a large gap between earnings and what schools actually receive. Rep. Igo said raising the cap to 4.5% could bring in significantly more money while still allowing the principal to grow.
Sen. Kunesh, a former educator, said the idea attracted broad support in the Legislature because it offers a way to address school funding needs without burdening taxpayers. “I think everybody recognizes the need for additional funding for public schools, and this is one way to do it without putting an additional burden on our taxpayers,” she said.
Rep. Igo said the amendment drew votes from both parties. “Republicans and Democrats alike will be linking arms in saying, ‘Vote for this,’” he said. “The Legislature believes in it, too, and they believe in a bipartisan way. I think it’s the kind of policy Minnesotans want to see.”
Current distributions vary by district size. The Minneapolis Public School District received nearly $2 million in 2025; more commonly, districts receive hundreds of thousands of dollars annually. The proposed change would lift per-pupil funding from about $65 to roughly $95.
Fred Nolan, interim executive director of the Minnesota Rural Education Association, said many rural districts have struggled to pass local levies and referendums, making any additional state funding helpful. “I suspect it will allow districts to not cut as much or reduce class sizes,” he said. “For the smaller ones it helps in minor ways to keep their funding going. Maybe they’re able to buy curriculum materials, maybe do teacher training, maybe bring in some new software.”
The Permanent School Fund traces its origins to the federal government’s grant of public lands to Minnesota upon statehood. School trust lands covering millions of acres — largely forests and mineral deposits in northern Minnesota — have generated revenue through timber harvesting, mining and land sales for more than 160 years. Investment growth now drives the fund’s expansion.
Rep. Igo said he envisions the fund eventually providing $300 to $400 per pupil across the state. “Our forefathers that founded our state can be smiling knowing that we actually accomplished the goal of funding public education,” he said.
Constitutional amendments in Minnesota require a majority of “yes” votes from all ballots cast. Leaving the question blank counts as a “no” vote, which Igo and Kunesh said makes voter education critical over the summer and fall. The state has held 213 constitutional amendment votes since its founding, with 120 passing.