WHAT

IS THE PERMANENT SCHOOL FUND?

A FUND CREATED AT STATEHOOD FOR MINNESOTA STUDENTS

Minnesota's Permanent School Fund (PSF) is one of the oldest sources of funding for public education in our state.

Constitutionally established in 1858 when public lands were set aside specifically to support public education, Minnesota’s Permanent School Fund (PSF) is built upon proceeds from public lands. Rather than a one-time spending account, it acts as a permanent endowment, continually generating revenue from Minnesota's natural resources. In the late 1800's most of the land in southern Minnesota was sold to private interests to promote development and agriculture.

Today, over 2.5 million total acres plus 1 million acres used for mineral rights remain. Much of the land is intermingled with county, federal, tribal, private, and other state lands. Revenues generated from trust lands, including timber sales, mining activity, land leases, and other natural resource activities, continue to contribute to the fund. The fund's assets are invested by the State Board of Investment and managed to support both current and future generations of Minnesota students.

TIMELINE

1958

THE FEDERAL GOVERNMENT GRANTED MILLIONS OF ACRES OF LAND TO THE STATE OF MINNESOTA FOR THE USE OF PUBLIC SCHOOLS. THESE LANDS CREATED THE SCHOOL TRUST LANDS.

1900

BY 1900, MANY OF THE ORIGINAL ACRES IN THE SOUTHERN PART OF THE STATE HAD BEEN SOLD. STATE POLICY THEN SHIFTED TO PRESERVING REMAINING LANDS FOR THE LONG-TERM INTEREST OF MINNESOTA’S PUBLIC SCHOOL STUDENTS.

2024

THE MINNESOTA LEGISLATURE ESTABLISHES A NON-PARTISAN TASK FORCE TO EVALUATE THE FUND AND MAKE POTENTIAL RECOMMENDATIONS TO THE FUTURE LEGISLATURE TO BALANCE SUPPORTING CURRENT STUDENTS AND MAINTAINING FUND BALANCE FOR THE FUTURE.

2024

jan

THE PERMANENT SCHOOL FUND TASK FORCE REPORTED THEIR RECOMMENDATIONS TO THE LEGISLATURE.

THE MINNNESOTA HOUSE OF REPRESENTATIVE AND SENATE PASSED LEGISLATION TO ASK VOTERS TO PASS A CONSTITUTIONAL AMENDMENT TO UPDATE HOW THE PERMENT SCHOOL FUND IS DISTRIBUTED.

2026

may

2026

sept 18

EARLY VOTING BEGINS

2026

nov 3

ELECTION DAY

Where are the School Trust Lands?

For a more detailed look, see the DNR's interactive map here

92% of trust lands are located in ten northern Minnesota counties due to state sale of most southern trust lands during the 1800's to promote agriculture.
Lands include forests, grasslands, farmlands used for grazing and crop production, construction aggregate, and mineral production.
A significant portion of of current trustlands are wetlands that are low-lying and inaccessible.

State of Minnesota, Office of School Trust Lands

How the fund works

Step 1

School trust lands generate revenue.

Step 2

Funds are invested by the State Board of Investment.

Step 3

The Permanent School Fund grows over time.

Step 4

Annual distributions support public schools throughout Minnesota.

PROTECTED

FOR FUTURE GENERATIONS

The Permanent School Fund is intended to benefit both current and future students.

The amendment does not eliminate the fund or change its purpose. The fund would continue to be managed and invested for the long-term benefit of Minnesota students.