NU school wants ‘yes’ vote on funding amendment

Permanent school funding increase on Nov. ballot

NEW ULM -- New Ulm Superintendent Sean Koster said a blank ballot will count as a no vote on the Permanent School Fund constitutional amendment on the Nov. 3, 2026 ballot.

“If a voter leaves this constitutional amendment question blank, the blank effectively counts against,” Koster said during his report to the New Ulm School Board, Thursday.

The amendment being proposed originated in the Minnesota House and is intended to provide permanent school funding investment through a constitutional amendment. The amendment is being brought to Minnesota voters as a referendum vote.

The question on the ballot will read: “Shall the Minnesota Constitution be amended to increase the funding going to all school districts from the permanent school fund, which is a fund that supports school districts without raising individual income or property taxes, effective July 1, 2027?”

Koster said the fund dates back to Minnesota statehood. At statehood, 2.5 million acres of trust lands were set aside for schools. Timber, mining, leases and royalties built a principal now at $2.2 billion. It distributed $58 million in the 2024-25 school year.

Under the 1800s constitution, distributions are limited to interest and dividends – about 2 to 2.5 percent per year. This proposed amendment would allow 4.5% of the three-year average net value beginning July 1, 2027. The proposed change would allow distributions to be based on the full market value of the fund’s investment

“The proposed amendment does not create a new fund or raise individual income or property taxes,” Koster said. “Instead, it would modernize the way the existing fund distributes investment earnings to Minnesota schools.”

For New Ulm, Koster said the change equals $42 per student. He said a local operating referendum is about $700 per student. The $42 is statewide and requires no local tax increase.

“Other states go as high as five or six, still a conservative increase, but nonetheless an increase because the fund has raised over billions of dollars right now, especially over the last ten years,” Koster said.

School board member and Policy Committee Chair Amanda Groebner said the bill had strong bipartisan support in the state legislature.

"[It] passed the house with 100% yes votes," Groebner said.

Koster said the district will conduct voter education. He said constitutional amendments in Minnesota are determined by a majority of all voters participating in the election.

“All we can do is share information,” Koster said. “It’s not about what side of the aisle. It’s just about looking at 30 to 50 dollars per student going up across the state. Every district will get a little bit more money per student.”

Koster said he will present to Lions Club and Sertoma and will seek time at Rotary. Groebner will present to the League of Women Voters. 

The district will distribute information through radio, the Journal, Peachjar, its website app and videos to families.

Board members received a handout titled “Every Minnesota Public School Student Is Part of a Trust Fund.” 

The handout explains trust lands and states the change would occur without raising taxes.