THE PERMANENT SCHOOL FUND
TASK FORCE
WHY WAS THE TASK FORCE CREATED?
In 2024, the Minnesota Legislature created the Permanent School Fund Task Force to take a fresh look at how the Permanent School Fund supports Minnesota's public schools. The fund has grown significantly over the years, but the rules for distributing money to schools have changed very little. Lawmakers asked the task force to determine whether the current system was still the best way to balance the needs of today's students while protecting the fund for future generations.
TASK FORCE AT-A-GLANCE
WHO SERVED ON THE TASK FORCE?
The task force included nine members with expertise in investing, finance, trust management, accounting and law. Members were appointed by the Governor, the Legislative Permanent School Fund Commission, the Minnesota Department of Education and the State Board of Investment. Their role was to study the issue and make recommendations — not to campaign for a particular outcome.
TASK FORCE AT-A-GLANCE
The Task Force membership comprised:
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The commissioner of education or the commissioner's designee: Daley Lehmann
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An employee or other member appointed by the State Board of Investment: Andrew Krech
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Four members appointed by the governor: Denise Dittrich, Tracey Fiereck, Tracy Lhotka, Aaron Vande Linde
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Three members appointed by vote of the Legislative Permanent School Fund Commission: Terese Spano-Madden, Paul Peltier, Julie Sandstede
WHAT DID THE TASK FORCE DO?
Over the course of more than a year, the task force:
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Reviewed the history of the Permanent School Fund
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Studied how the fund has grown over time
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Examined how money is currently distributed to schools
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Compared Minnesota's system with other educational endowments
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Reviewed financial models and investment data
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Considered ways to provide more consistent funding while protecting the fund for the future
WHAT GUIDED THE WORK?
The task force focused on four goals:
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Protect the Permanent School Fund for future generations.
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Support Minnesota students today.
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Provide more consistent annual funding for schools.
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Follow modern investment and endowment best practices.
WHAT DID THE TASK FORCE RECOMMEND?
After completing its research, the task force unanimously recommended updating how annual distributions are calculated.
Its recommendation included:
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Using a market-value-based distribution formula.
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Distributing 4.5% of the fund's average value over the previous three years.
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Continuing to protect the fund so it can benefit future generations while providing more stable funding for schools today.