ROSEMOUNT, Minn. — This November, voters in Minnesota will decide whether to update the state’s constitution to change how much money is sent to public schools from a special account called the Permanent School Fund. 

If the amendment passes, local public schools across the state could receive more money without raising income or property taxes for Minnesotans.

What is the Permanent School Fund?

When Minnesota became a state back in 1858, land was set aside to support public education. Today, the state earns money from those lands through activities like mining, harvesting timber, and renting property.

All of that money goes into a big savings account called the Permanent School Fund. The state cannot spend the main money in the savings account, called the principal. Instead, it invests the money so the fund can grow. Over the years, the account has grown from $675 million in 2010 to more than $2.3 billion today.

Every year, the extra money earned from those investments is sent directly to Minnesota public schools based on how many students they have. 

What Would the Ballot Question Change?

Under the current rules written in Minnesota’s constitution, schools only receive money generated from interest and dividends (earnings from investments).

The proposed constitutional amendment would change the rule for how that money is handed out. Under the new plan:

• Schools would receive 4.5% of the funds' average market value, calculated over a three-year period.
  • Currently, schools on average receive about $68 per pupil. If passed, the fund would provide about $101per pupil to schools.
• Using a three-year average helps keep the funding steady, even if the stock market goes up or down in a single year. 
• The additional funds would help school districts pay for classroom needs, teachers, and opportunities for students.

What Stays the Same?

• The ballot measure does not raise property taxes, income taxes, or sales taxes. It simply updates how an existing state fund spends its money.
• The primary balance of the fund will remain locked away so it can continue growing for future generations of students. 
• Money will continue to be sent to every public school district in the state based on student enrollment.

Why Is It on the Ballot?

Because the rules for the Permanent School Fund are written directly into the Minnesota Constitution, the legislature cannot change them on its own. State leaders must ask voters for permission to update the rules. 

When Minnesotans go to the polls this November, they will get to vote “Yes” or “No” on making this update to help fund the state’s public schools. 

Learn more at district196.org/vote2026.

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District 196 provides boundless opportunities and infinite possibilities for more than 29,000 students in early childhood, K-12 and adult education programs, as well as community education programs for lifelong learners of all ages. 

District 196 serves more than 163,000 residents in the cities of Rosemount, Apple Valley, Eagan, Burnsville, Coates, Empire, Inver Grove Heights, Lakeville and Vermillion Township in Dakota County, Minnesota. For more information, visit District196.org.