The establishment of school trust lands at the time of statehood is a sacred compact that revenue generated from the lands will always be used for the benefit of Minnesota's public school children—and no one else.
The principal (or “corpus”) of the Permanent School Fund consists of cash generated from activities on school trust lands. The Minnesota Constitution prohibits the principal from being spent—the state must hold it in trust forever. The interests and dividends generated from investments of the principal are allocated semi-annually to Minnesota's school districts on a per-pupil basis.
Every public school district in Minnesota receives funding from the Permanent School Fund based on student enrollment and current size of the fund. This funding is in addition to the general education aid that the state provides to all school districts.