Minnesotans to decide on new permanent school funding mechanism | The Flag - AM 1100 and FM 92.3 WZFG
Minnesotans to decide on new permanent school funding mechanism | The Flag - AM 1100 and FM 92.3 WZFG # Minnesotans to decide on new permanent school funding mechanism - by Chris Larson - September 7, 2026 - 8:57 pm - Local News, News Photo courtesy of Minnesota Historical Society SAINT PAUL, MINN.
am1100theflag.com · September 8, 2026
Minnesotans to decide on new permanent school funding mechanism | The Flag - AM 1100 and FM 92.3 WZFG
# Minnesotans to decide on new permanent school funding mechanism
- by Chris Larson - September 7, 2026 - 8:57 pm - Local News, News
Photo courtesy of Minnesota Historical Society
SAINT PAUL, MINN. – Minnesota voters will decide this November whether to approve a constitutional amendment modernizing the management and distribution rules for the state’s Permanent School Fund.
In a letter sent July 28, 2026, Assistant Attorney General Nathan J. Hartshorn formally outlined the proposed amendment for Secretary of State Steve Simon, preparing the measure to appear on the state general election ballot on November 3, 2026.
## Key changes proposed to the permanent school fund
If approved by voters, the amendment will rewrite Article XI, Section 8, of the Minnesota Constitution to restructure how the fund operates:
- Perpetual financial resource: Formally mandates that the fund be managed as a perpetual financial resource dedicated solely to apportioning money to Minnesota school districts. - Inflation protection and balancing generations: Requires fund management to preserve purchasing power over time while balancing the needs of current and future beneficiaries. - Administrative expenses: Authorizes reasonable and necessary administrative costs for managing the fund and school trust lands to be paid directly from the fund as prescribed by law. - Distribution policy flexibility: Replaces rigid investment requirements with a flexible distribution policy set by statutory law.
## Accompanying legislation
The Minnesota Legislature passed companion legislation in May under 2026 Minn. Laws ch. 114, which will automatically take effect on July 1, 2027, for fiscal year 2028 aid if voters pass the constitutional amendment:
- 4.5 percent annual distribution: Requires the State Board of Investment to calculate an annual distribution equal to 4.5 percent of the fund’s average net asset value over the preceding three fiscal years. - Shift from pure income: Changes the school endowment fund’s structure to consist of these calculated 4.5 percent annual distributable amounts rather than relying strictly on the fund’s direct investment income. - Reporting: Mandates annual reporting of the distribution amount to both the Legislative Permanent School Fund Commission and the Commissioner of Education.