MN Permanent School Fund

Barbie Roessler
Director of Finance & Operations
507-333-6003 |Email

Minnesota Permanent School Fund: What You Need to Know

Minnesota voters will see a proposed constitutional amendment related to the Minnesota Permanent School Fund on the November 2026 general election ballot.
Because this fund has a long history and the proposed changes can be difficult to understand, Faribault Public Schools is providing this information as a resource for our community. Minnesota voters will be asked whether to amend the Minnesota Constitution to provide more funding to public school districts through the Permanent School Fund—without increasing individual income or property taxes.

An Important Note About Voting
Minnesota's Secretary of State states that failure to vote on a constitutional amendment has the same effect as voting "No" on the amendment. If you wish to have your vote counted on this question, be sure to select either Yes or No. Because this is a proposed amendment to the Minnesota Constitution, it must receive approval from a majority of voters voting on the amendment.

The information below is intended to explain the proposed amendment and its potential impact on public schools.

What is the Minnesota Permanent School Fund?
What Will Voters See On The Ballot?

What is the Minnesota Permanent School Fund?

The Minnesota Permanent School Fund is an existing fund that has supported Minnesota's public schools for generations. In 1858, the federal government granted millions of acres of land to Minnesota for the benefit of public schools. The state later established policies to preserve these lands for Minnesota public school students. Today, the Permanent School Fund is an investment fund that provides an annual distribution to Minnesota public school districts. The fund has grown significantly over time. Its balance increased from approximately $675 million in 2010 to $2.3 billion in 2025.

What Would The Proposed Constitutional Amendment Change?
The proposed amendment would change how money from the Permanent School Fund is distributed to Minnesota public school districts. Currently, distributions are based primarily on investment income, including interest and dividends generated by the fund. Under the proposed change, the annual amount available for distribution would be based on 4.5% of the fund's average net asset value over the preceding three fiscal years. The goal of the change is to provide a larger and more predictable distribution to public schools while preserving the fund's purchasing power over time.

What Would Not Change?
The proposed amendment would not:

Create a new fund
Change the purpose of the Permanent School Fund
Change the land held for the fund
Create a new tax
Increase existing individual income or property taxes

The Permanent School Fund would continue to support Minnesota public school students.

What Will Voters See On The Ballot?

The proposed constitutional amendment will appear on the November 2026 general election ballot. The official ballot question will read:

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?

This is the official ballot language established by Minnesota law and provided by the Minnesota Secretary of State.

How Would This Affect Faribault Public Schools?

Faribault Public Schools currently receives approximately $235,000 annually from the Minnesota Permanent School Fund.
Based on current estimates, the proposed change could increase the district's annual distribution by approximately $90,000, bringing the estimated total to approximately $325,000 annually. The actual amount would vary based on factors such as student enrollment and the value of the fund.
If approved, the change would take effect July 1, 2027, with the estimated increase beginning in fiscal year 2028. The additional funding would be part of the district's overall budget. It would not be designated for a specific program or restricted to a particular use.

Why Is This On The Ballot?
The Minnesota Permanent School Fund has grown substantially over the past several decades, while the method used to distribute money to schools has remained largely unchanged. In 2024, a nonpartisan task force was established to evaluate the fund and recommend its future. The task force submitted recommendations to the Minnesota Legislature, and legislation updating the fund's distribution method was passed in 2026. The proposed constitutional amendment now goes before Minnesota voters.

Learn More
The Minnesota Permanent School Fund has a long history of supporting Minnesota's public schools. Community members who would like additional information about the proposed constitutional amendment can review resources provided by the State of Minnesota.
Learn more about the Minnesota Permanent School Fund and the proposed constitutional amendment at mnpsfamendment.org.

Click here to learn more about the Minnesota Permanent School Fund

Faribault Public Schools is providing this information for educational purposes and is not advocating for or against the proposed constitutional amendment.

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In This Section

MN Permanent School Fund

Minnesota Permanent School Fund: What You Need to Know

What is the Minnesota Permanent School Fund?

What is the Minnesota Permanent School Fund?

What Will Voters See On The Ballot?

How Would This Affect Faribault Public Schools?

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