Senate approves constitutional amendment to increase Permanent School Fund distributions after debate over safeguards

The Minnesota Senate advanced House File 3900 on May 7, a constitutional amendment proposing higher distributions from the Permanent School Fund to increase school funding per pupil. Sen. Kunesh outlined the fund’s history and current value, saying the fund’s market value is approximately $2.3 billion and the proposal would raise the distribution rate and increase per-pupil support.

Sen. Duckworth offered amendment A2 to require a two-thirds majority of each chamber for any future changes to payout percentages. Duckworth framed the amendment as a safeguard to depoliticize the fund and protect principal, saying the change would require “collaboration” and prevent future automatic reductions to the fund’s longevity. Supporters of the A2 amendment argued other states that increased distributions without safeguards later regretted it; opponents raised concerns the amendment could complicate the ballot question and tie the hands of future legislatures.

On roll call, the A2 amendment was adopted (34 yeas, 33 nays). The Senate later recorded final passage of the amended constitutional amendment language; the measure will proceed according to constitutional amendment procedures and later appear on the ballot if enrolled and approved in the required sequence.

Senators on both sides stressed the need to preserve the fund’s long-term principal while finding ways to increase support for schools. The adopted two-thirds safeguard will require broader bipartisan support for any future changes to the fund’s payout rule, per the A2 language adopted on the floor.