Constitutional amendment could increase aid from permanent school fund

State voters will be asked to allow the annual distribution from the permanent school fund endowment be increased up to 4.5% of the fund’s three-year average.

The law, effective Aug. 1, 2026, requires that the proposed amendment be submitted to the people at the 2026 state general election: “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?”

If the change is approved by voters, statutes would be updated to reflect the change, effective July 1, 2027, for aid payable in Fiscal Year 2028.

Additionally, the director of the permanent school fund endowment will need to report by Aug. 15 the distributable amount to the Legislative Permanent School Fund Commission and the Department of Education.

Rep. Spencer Igo (R-Wabana Township) and Sen. Mary Kunesh (DFL-New Brighton) are the sponsors.

HF3900/SF3593*/CH114

HF3900* / SF3593 / CH114