Bill > SF3593

This bill proposes a constitutional amendment to change how earnings from Minnesota's Permanent School Fund are calculated and distributed to support school districts. The Permanent School Fund, which is made up of proceeds from land grants and investments, is intended to be a perpetual resource for schools. Currently, the law focuses on maximizing investment returns while ensuring the fund's principal remains intact, with income distributed after accounting for gains and losses from selling investments. This bill would modify this by establishing a new method for calculating "distributable earnings," which would be set at 4.5 percent of the fund's average net asset value over the preceding three fiscal years. This new calculation aims to provide annual distributions while preserving the fund's purchasing power for future beneficiaries. The proposed amendment would also clarify that the management of the fund should balance the needs of current and future students, with the specific distribution policy to be defined by law. If approved by voters, this change would take effect on January 1, 2027, and would also amend existing statutes to reflect this new calculation of distributable earnings.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3593/