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House passes constitutional amendment to increase per‑pupil distribution from Permanent School Trust Fund
Summary
Lawmakers approved a constitutional amendment to lift the distribution rate from the Permanent School Trust Fund, directing more unencumbered per‑pupil dollars to Minnesota school districts if voters approve the ballot question. The measure was met with extensive bipartisan floor debate over distribution mechanics, tribal impacts and ballot language.
The Minnesota House on April 30 passed House File 3900, a proposed constitutional amendment that would increase the annual distribution from the Permanent School Trust Fund (commonly called the permanent school trust) from roughly 2.5 percent of the fund to 4.5 percent of the corpus. If the Legislature approves and voters ratify the change, the amendment would raise the per‑pupil distribution of trust proceeds beginning July 1, 2027.
Rep. Igo, the bill’s author, described the trust’s origins and growth and said the proposed change would ‘‘unlock a 40% increase in funding’’ for schools without raising taxes. "Instead of $68 per pupil, we're going to be around $95 per pupil," Igo said on the floor, adding the distribution is “unencumbered” and would send flexible funds to each school district.
The measure drew sustained floor debate about technical design, the State Board of Investment’s role, and equity for tribal schools that historically did not receive the same share of trust revenues. Rep. Long offered a technical amendment to align the House language with the Senate and ensure administrative funding for the State Board of Investment; that amendment was adopted. Several members urged continued work to find a mechanism so tribal districts receive an equitable per‑pupil share where trust land sits in or near reservations.
Backers said the change modernizes long‑standing trust management and unlocks funds already generated by investments. Opponents cautioned about long‑term management choices and the tradeoffs embedded in constitutional change, while many members from across the aisle praised the change as a bipartisan way to add predictable education funding.
The House adopted amendments and recorded passage by a large margin (recorded roll calls during debate show broad bipartisan support). The measure will go to the Senate and, if enacted, would appear on the 2026 ballot for voter approval.
What’s next: If the Senate concurs and both chambers clarify ballot language, voters would decide the constitutional amendment in the next statewide election.
