Updating MN School Trust Fund Could Provide Modest Budget Relief

School board leaders in Minnesota said people might want extra support for public schools but the idea of doing it through property tax hikes might not sit well with them amid higher living costs. (Adobe Stock)

By Mike Moen, Minnesota News Connection

Minnesota voters are getting reminders about a ballot question they will see this fall. Education groups said with financial stress still weighing down districts, a constitutional amendment could unlock extra support without hurting wallets.

On the November ballot, a question asks if the state should increase money flowing from a special fund dating back to Minnesota’s statehood. It generates revenue from school trust lands where there is activity like timber sales and while its assets have grown, current rules limit how much is given out.

Gary Lee, deputy executive director of the Minnesota School Boards Association, said it would not bring a windfall of cash but every little bit helps.

“Is this going to fix their problems the school districts are facing? No, but it may save a job here and there,” Lee explained.

For example, South St. Paul Public Schools says amendment approval would mean an additional $80,000 in annual revenue for the district. Earlier this year, 47 metro-area districts reported a combined $223 million in shortfalls. Supporters of the ballot question stressed the change would not raise taxes.

Issues like rising operating costs are contributing to financial pressures for K-12 schools but more indirectly, policy observers said federal cuts to programs like SNAP make it harder for states to find more education dollars.

Rep. Spencer Igo, R-Grand Rapids, played a key role in getting the Legislature to sign off on the proposed ballot question. Igo said the beauty of it is there are no strings attached in how districts could use the extra money.

“Unencumbered dollars are the bread-and-butter ways that school districts are keeping education at its highest level. Whether it’s keeping a teacher or a para, or it’s investing in building maintenance, or maybe it’s helping with busing, this funding is critical for filling those gaps,” Igo emphasized.

Officials leading this outreach said it is important for voters to not leave the question blank because if people back the idea but neglect to fill out this section of their ballot, it is the same thing as a “no” vote.