What is the Permanent School Fund and What Does it Mean for Jordan Public Schools?

Did you know that all schools in Minnesota are part of a trust to help fund public education? 

What is the Permanent School Fund?
Established when Minnesota became a state in 1858, the Permanent School Fund is a constitutional trust managed by the state. Revenue generated from state-owned school trust lands, primarily through mining, timber sales, and land leases, is invested to generate long-term interest and dividend payments that are distributed directly to public school districts on a per-pupil basis.

Currently, the revenue allocated to schools comes strictly from traditional earnings such as dividends and interest, leaving other capital gains locked in the corpus of the trust.

The Constitutional Amendment
When Jordan Public Schools district voters head to the polls on Tuesday, Nov. 3, they will join Minnesotans statewide in deciding a proposed amendment to the state constitution.

The ballot question centers on modernizing how revenue from Minnesota’s Permanent School Fund (PSF) is calculated and distributed to public school districts across the state, including Jordan Public Schools (ISD 717).

What Will the Amendment Do?
The proposed constitutional amendment aims to modernize the investment management and payout formula of the fund to reflect standard, modern trust management strategies.

If approved by voters, the amendment would:

• Adopt a Total-Return Investment Model: Allow the state to distribute funds using a modernized "total return" formula (a set percentage based on the overall multi-year average market value of the trust) rather than relying solely on traditional interest and dividends.
• Increase Direct Revenue to Schools: It would increase annual per-pupil distributions to local public school districts without adding new state or local taxes. This increase is estimated to be an additional $33 per pupil. 
• Protect the Trust’s Principal: Maintain strict constitutional protections ensuring that the underlying core principal of the trust remains intact for future generations of Minnesota students.

How Voting Works on Constitutional Amendments
Under Minnesota law, passing a constitutional amendment requires a majority of all voters participating in the election, not just a majority of those who vote on the specific question.

• A "YES" vote supports amending the state constitution to update the fund’s distribution formula to a modern total-return model.
• Leaving the question blank acts as a "NO" vote, as it reduces the total percentage of affirmative votes relative to the overall turnout on Election Day.

Looking Ahead to Election Day
The outcome will impact public school funding formulas statewide. For Jordan Public Schools, this could mean an estimated increase of approximately $60,000. District residents are encouraged to learn more about the constitutional amendment and review their sample ballots prior to casting their votes on Nov. 3, 2026.

For additional information on the amendment, residents can visit: https://www.mnpsfamendment.org/.