Minnesota voters will decide whether to amend the state’s constitution to increase school funding without raising taxes.
The constitutional amendment would increase the annual distribution of the state’s Permanent School Fund to public schools throughout Minnesota.
The fund was established shortly after Minnesota’s statehood in 1858. It dates from a piece of legislation initially passed by the Continental Congress that established a way to pay for public education. As new states formed, the federal government granted them certain sections of land to be set aside to fund public schools.
Today, the bulk of Minnesota’s school trust lands are in 10 northern Minnesota counties. Under the state constitution, these lands have the specific purpose of generating revenue for Minnesota schools. They include forestland, mineral resources, agricultural land and wetlands. Timber and mining from those lands have been major revenue sources for the fund over the years.
The Minnesota State Board of Investment manages the money generated from school trust lands. Since 2017, the fund’s market value has nearly doubled, growing from $1.3 billion to $2.4 billion.
Under the current state constitution, about 2.5% of the fund’s value is distributed to schools per year, although the fund has averaged about 8% in annual investment returns over the last 10 years.
This amendment would increase the distribution of the fund to schools, so 4.5% of the three-year average of the fund would be allocated annually.
That would increase the per-pupil allotment from the fund from about $68 per student to about $101 per student.
That would provide approximately an additional $1 million a year to both the Minneapolis and St. Paul Public Schools. Last year, Minneapolis schools made $39.7 million in budget cuts while St. Paul schools cut $14 million.
The constitutional amendment will only be approved if a majority of voters vote yes. Any ballots that leave the question blank will be counted as a no vote.
Polling places close at 8 p.m. Election results will be updated here approximately every 10 minutes throughout the evening.
