This browser does not support the Video element.
Voters to decide on school budget amendment
This November Minnesota voters can give their schools a cash infusion in their budgets without raising any taxes as part of a proposed constitutional amendment that will be found on their ballot. FOX 9’s Corin Hoggard explains what you need to know before you vote.
(FOX 9) - A bipartisan push at the Capitol could send more dollars to public and charter schools across Minnesota by changing how the state draws from a fund that has existed since statehood.
The Permanent School Fund explained
What we know:
The Minnesota Permanent School Fund was created when Minnesota became a state in 1858. Since then, it has grown to a value of $2.3 billion.
Under current rules, the fund is only allowed to pay schools from interest and dividends. Revenue and capital gains grow the fund but do not flow to schools.
Dig deeper:
The proposed constitutional amendment would increase the fund's payout rate from about 2.5% to about 4.5%. That translates to an estimated $30–$35 per student.
In real dollars, that means an extra $34,000 for Warroad, $77,000 for Winona and $345,000 for North St. Paul Maplewood Oakdale.
The fund has grown by an average of 5.61% since 1858, meaning a 4.5% payout may be sustainable.
Lawmakers would also have the option to dial back the payout rate if the fund's principal starts to shrink.
What they're saying:
Supporters on both sides of the aisle are backing the change.
"It is going to increase funding education at zero cost to the taxpayer," said Rep. Spencer Igo, a Republican from Grand Rapids.
"We know this isn't going to solve all the funding issues in Minnesota," said Sen. Mary Kunesh, a DFL senator from New Brighton. "But at least this is a really good way to begin to find those additional dollars that are going to go into our schools."
How schools could use the money
Big picture view:
Because the money comes with no strings attached, districts have flexibility in how they spend it. North St. Paul Maplewood Oakdale Superintendent Christine Tucci Osorio said the $345,000 her district would receive is significant.
"When I say this is not something to sneeze at, I really, really mean that," said Tucci Osorio. "There's a heck of a lot we can do."
She said the annual nature of the funding is key.
"And remember, it's annually. So you can consider hiring staff with that," said Tucci Osorio. "A lot of times temporary money, you don't want to put an employee on salary because they might have to get cut later."
The district could use the funds to save jobs in mental health or in the classroom.
One important voting rule
Why you should care:
A North St. Paul teacher is making sure people understand how the vote works.
"Not many people know this, but back in 1898, which is the same year as the Spanish-American War, social studies lesson," said Jim Honsa, a teacher at North St. Paul. "You know a constitutional amendment was passed that you need a majority of all voters. And so a blank vote is a no vote."
That means leaving the question blank on a ballot counts as a ‘no’ vote against the amendment passing.