Minnesota School Funding Amendment Could Boost Rochester Schools

Rochester, MN (KROC-AM News) - Minnesota voters will be asked this fall to approve a constitutional amendment that would provide additional funding to public school systems in the state without additional taxes.

What Is the Permanent School Fund?

Rochester Public Schools Superintendent Kent Pekel talked about the Permanent School Fund during his regular monthly appearance on News-Talk 1340 KROC-AM and 96.9 FM with Andy Brownell during the Rochester Today show.

Click on the link below to listen to the entire program.

How the Fund Supports Minnesota Schools

Superintendent Pekel says the Permanent School Fund has been in place since the early days of this nation. He says Congress made a decision in 1785 to create a revenue source for public education using wealth created by the westward expansion of the United States.

The law directed that the land in the western territories be divided into townships, each with 36 sections, with the revenues generated by one of those sections used to support public schools. Pekel explains that most of the 2.5 million acres of land in Minnesota that are set aside to generate revenue for public schools under that law are in northern Minnesota, where the Permanent School Fund receives the proceeds of mining, timber production, recreation and other activities.

Permanent School Fund Has Grown Dramatically

According to the superintendent, Minnesota's Permanent School Fund has grown exponentially over the past 25 years. Its value grew from approximately $675 million in 2010 to around $2.3 billion in 2025. The proposed constitutional amendment seeks voter approval to draw additional funding from it to support public schools without endangering its solvency.

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How the Amendment Could Affect Rochester

Pekel says that under state law, public school systems in Minnesota share in the distribution of 2.5% of the value of the Permanent School Fund annually. Last year, that provided the Rochester School District with about $1.16 million.

The proposed constitutional amendment would increase the distribution rate from the fund to 4.5%. Pekel says that would boost the annual allocation to Rochester Public Schools to a little over $1.7 million.

School Amendment vs. Local Referendums

During his appearance on Rochester Today, Pekel said there is concern among some school districts that the constitutional amendment ballot item might create some confusion. He says those concerns are largely being expressed by school districts seeking additional taxpayer funding through referendums that will also be on the November ballot. Those districts are worried that voters may confuse the issues and vote for the constitutional amendment thinking that it would address their local public school system's financial needs.