Overview
- Voters decide on Nov. 3 whether to amend the state constitution to raise annual distributions from the Permanent School Trust Fund from 2.5% to 4.5%.
- Under the amendment the State Board of Investment would calculate distributable money as 4.5% of the fund’s average net asset value over the previous three fiscal years and report that amount to education and oversight officials.
- Supporters say the higher payout would boost district budgets without raising property or income taxes and could nearly double last year’s $58 million transfer to schools, raising per-pupil aid from about $68 to $101 in state estimates.
- Opponents warn larger payouts could erode the fund’s principal over time, while backers point to recent average returns and the amendment’s language on preserving purchasing power as protections for the fund’s long‑term health.
- The Permanent School Trust Fund began in 1858 and has grown to roughly $2.3 billion, so passage would immediately change how that existing resource is shared and could affect district staffing, programs, and budgeting choices across Minnesota.