2026 MILLE LACS BAND OF OJIBWE VOTERS GUIDE: WHAT MINNESOTA'S SCHOOL FUNDING AMENDMENT WOULD CHANGE

October 4, 2026

Voters will decide whether to change how money from Minnesota's Permanent School Fund is distributed to schools — a decision that also has implications for Tribal contract schools such as Nay Ah Shing

By Vivian LaMoore, Inaajimowin Editor

Minnesota voters will find one proposed amendment to the state Constitution on their Nov. 3 ballot. The question involves the Permanent School Fund, a more than century-old source of funding for Minnesota schools.

Unlike voting for candidates and other races on the ballot, simply skipping the constitutional amendment question has consequences.

Under Minnesota law, leaving a constitutional amendment question blank has the same effect as voting no.

That makes it especially important for voters to understand what the amendment would change before casting their ballots.

What is the Permanent School Fund?

Minnesota's Permanent School Fund traces its origins to the state's admission to the Union.

When Minnesota became a state in 1858, the federal government granted sections 16 and 36 of each township, or equivalent lands, to the state for the support of schools. Congress later made additional land grants. In all, Minnesota received approximately 8.1 million acres through four federal grants that became school trust lands.

Today, approximately 2.5 million acres remain as school trust lands. Revenue is generated through sources including timber sales, mineral leases and royalties, land sales, commercial leases, easements and other real estate transactions.

Money generated from those assets is deposited into the Permanent School Fund and invested. Under the current Minnesota Constitution, the principal is preserved while net interest and dividends are distributed to Minnesota public school districts and charter schools based on enrollment.

The fund had a market value of approximately $2.4 billion as of March 31, 2026.

What would the amendment change?

Currently, distributions are based primarily on interest and dividends earned by the fund.

If voters approve the amendment, Minnesota would move to a different method of calculating how much money is distributed each year. Beginning July 1, 2027, the distributable amount would equal 4.5% of the fund's average net asset value over the previous three fiscal years.

The new constitutional language would also direct the state to manage the fund as a perpetual financial resource, balancing annual distributions to schools with preserving the fund's purchasing power for future generations.

State and school estimates have used the 2025 distribution of approximately $68 per pupil as a comparison. Under the proposed formula, the estimated distribution has been approximately $101 per pupil. The actual amount in future years would depend on the value and performance of the fund.

The ballot language also specifies that the change would not raise individual income or property taxes.

What does this mean for Tribal schools?

There is an important distinction for Tribal contract schools such as Nay Ah Shing Schools.

The constitutional amendment itself continues to direct Permanent School Fund distributions to Minnesota school districts. However, separate legislation passed in 2026 provides Permanent School Fund aid to Minnesota Tribal contract schools if voters approve the constitutional amendment.

Under that law, a Tribal contract school's aid would be calculated using the same per-pupil Permanent School Fund amount paid to school districts, multiplied by the Tribal school's eligible enrollment.

That funding for Tribal contract schools would come from the state's general fund rather than directly from the Permanent School Fund.

The provision is scheduled to take effect July 1, 2027, for state aid beginning in fiscal year 2028, but only if voters approve the constitutional amendment.

The Mille Lacs Band and other Tribal Nations worked with state lawmakers, including Sen. Mary Kunesh, to ensure Tribal contract schools were included in legislation connected to the proposed change.

For Nay Ah Shing Schools, approval of the amendment would therefore create access to an additional state funding stream tied to the Permanent School Fund's per-pupil distribution.

If approved, the amendment would change the Permanent School Fund distribution formula to 4.5% of the fund's average net asset value over the previous three fiscal years. Based on current estimates, that would increase the distribution from approximately $68 per pupil to an estimated $101 per pupil.

Approval of the amendment would also trigger separate legislation making Tribal contract schools eligible for state aid calculated using the same per-pupil Permanent School Fund amount. That means Nay Ah Shing Schools would become eligible for an additional source of state funding beginning in fiscal year 2028.

For Nay Ah Shing Schools, passage of the constitutional amendment would provide a direct financial benefit by making the school eligible for this new per-pupil state aid. If the amendment does not pass, that new funding for Tribal contract schools would not take effect.

What does a YES vote mean?

A YES vote supports amending the Minnesota Constitution.

If the amendment receives the required majority:

The Permanent School Fund's annual distributable amount would be calculated at 4.5% of its average net asset value over the preceding three fiscal years.

The new distribution system would begin July 1, 2027.

School districts would receive distributions under the new formula.

Tribal contract schools, including Nay Ah Shing, would become eligible for corresponding per-pupil state aid under separate legislation passed in 2026.

The change would not increase individual income or property taxes.

What does a NO vote mean?

A NO vote means the Minnesota Constitution would not be changed.

If the amendment does not receive the required majority:

The current constitutional provisions governing the Permanent School Fund would remain in place.

The proposed 4.5% distribution formula would not take effect.

Distributions would continue under the existing system based on the fund's net interest and dividends.

The new state aid for Tribal contract schools that is contingent upon passage of the amendment would not take effect.

Leaving it blank counts the same as NO

Minnesota constitutional amendments have a voting requirement that is different from most other questions on the ballot.

An amendment must receive a majority of the votes of all voters participating in the election, not simply a majority of the people who answer the amendment question.

That means a voter who casts a ballot but leaves the constitutional amendment question unanswered is counted, for purposes of determining whether the amendment passes, the same as a no vote.

Voters who want to support the amendment must mark YES. Voters who oppose it should mark NO.

Either way, voters should understand the proposal and make an intentional choice before submitting their ballot.