Minnesota's constitutional amendment: What it means for schools this election

(FOX 9) - In addition to voting for a new governor, Minnesotans in November will have the chance to amend the state’s constitution, allowing for more funding to flow into schools without raising property taxes in the process.

Here’s what you need to know before you cast a vote:

Minnesota school funding amendment

What we know:

A constitutional amendment set to appear on Nov. 3 general election ballots will ask voters: "Shall the Minnesota Constitution be amended to increase the funding going to all school districts from the permanent school fund, which is a fund that supports school districts without raising individual income or property taxes, effective July 1, 2027?"

Dig deeper:

It’s a mouthful, but in short, it asks voters to change how much Minnesota’s Permanent School Fund pays public schools.

Established in 1858, the Permanent School Fund has experienced strong long-term investment growth, increasing in value from $675 million in 2010 to $2.3 billion in fiscal year 2025.

A "yes" vote would add an amendment to raise the payout rate to 4.5% of the fund's three-year rolling average value, an increase from 2.5% currently distributed to districts. Organizers say that if the amendment had been in place last year, schools would have received $101 per student — a $33 increase in funding for each pupil.

In May 2024, the Minnesota Legislature created a Minnesota School Fund Task Force, which concluded that a 4.5% distribution rate calculated using a 3-year rolling average of fund value "best balances consistent annual distributions with long-term preservation of fund value." The fund has grown by an average of 5.61% since established.

The fund is managed by the Minnesota State Board of Investment (SBI), the Department of Natural Resources (DNR), and the Department of Education (MDE).

It’s worth noting that leaving the question blank will count as a "No" vote.

Minnesota's school budgets

Big picture view:

It might seem small, but the funds can add to a district’s budget for an entire student body – at a time when some districts are struggling to keep balanced budgets due to expiring one-time pandemic funds.

Districts such as Warroad ($34,000), Winona ($77,000) and North St. Paul ($345,000) would gain additional funding with no strings attached, allowing them to decide how it’d be best utilized.

"When I say this is not something to sneeze at, I really, really mean that," North St. Paul Maplewood Oakdale Superintendent Christine Tucci Osorio previously told FOX 9. "You can consider hiring staff with that … A lot of times temporary money, you don't want to put an employee on salary because they might have to get cut later … There's a heck of a lot we can do [with it]."

In the Minneapolis Public Schools (MPS), the funds would add another $900,000 to the budget, as district officials work to curb a nearly $40 million budget shortfall that could require closing schools.

Similarly, Duluth Public Schools would receive another $280,000, as it works to address a $12 million budget deficit.