Board discusses proposed Minnesota Permanent School Fund amendment and local impact estimate

Board members discussed an upcoming statewide constitutional amendment on the November ballot that would change the payout rule for the Minnesota Permanent School Fund.

Presentations explained the fund's history and current distribution rules: the fund was established in the 19th century from state land grants and the existing language limits distributions to net interest and dividends. The proposed amendment would permit a distribution equal to 4.5% of the three-year average value of the permanent school fund, increasing estimated per-pupil payouts to approximately $95 from about $68. Using the district's enrollment projection, presenters estimated Shakopee could receive roughly an additional $210,000 annually if the amendment passes.

Board members asked whether increased payouts would risk depleting principal and whether the payout is calculated against land value or investment returns. Staff and presenters said the investment board and state analysts model multiple scenarios and remain confident that a 4.5% payout should not impair the fund's longevity given projected returns and the three-year averaging mechanism.

Members also stressed the ballot question will not increase local property taxes; the revenue source is the permanent fund income so the change is not a levy. Members discussed outreach and answering constituent questions and noted that fewer than 100 days remained before election day.

Next steps: board members and staff said they would be prepared to answer community questions and noted the amendment is a statewide ballot measure that voters will decide Nov. 3.