By Rich Larson
Minnesota voters will decide on a constitutional amendment in the November 2026 general election that would modernize how money is distributed from the state’s Permanent School Fund. The fund, which was established when Minnesota’s Constitution was ratified in 1858, generates revenue from school trust lands through activities such as mining, timber harvesting, and land leases. Today, the fund has grown to more than $2.2 billion and provides annual support to public, charter, and tribal schools across the state.
Under current constitutional rules, annual distributions are largely limited to the fund’s interest and dividends, averaging about 2.5% of its value. The proposed amendment would replace that system with a more predictable annual payout equal to 4.5% of the fund’s three-year average market value. Supporters argue that this approach better reflects modern investment practices, provides steadier funding, and protects the fund’s long-term purchasing power without increasing taxes.
Former Northfield superintendents of Public Schools, Dr. Chris Richardson and Dr. Matt Hillmann, strongly support the measure. Both emphasized that the amendment represents a rare bipartisan achievement. The proposal passed the Minnesota House 133-0 and the Senate 59-8 before being placed on the ballot.
For Northfield residents, the amendment would bring local benefits. Hillmann estimated that Northfield Public Schools could receive approximately $120,000 in additional annual revenue. While that amount would not solve Minnesota’s broader school funding challenges, it would provide meaningful support for students and staff. Richardson noted that the amendment would also benefit local charter schools, including Prairie Creek Community School and Arcadia Charter School, as well as tribal schools throughout Minnesota.
A key selling point for supporters is that the amendment does not raise property, income, or sales taxes. Instead, it allows schools to receive a slightly larger share of earnings generated by an existing state asset. Safeguards built into the proposal, including the use of a three-year rolling average, are intended to protect the fund from excessive withdrawals.
One important detail for voters is that constitutional amendments require an affirmative vote. Under Minnesota law, leaving the amendment question blank effectively counts as a “no” vote. For Northfielders, the decision will be an opportunity to weigh whether a modest but meaningful increase in school funding should come from a resource that has supported Minnesota education since statehood.
Rich Larson is the owner and General Manager of KYMN Radio. Contact him at rich@kymnradio.net
