A Sacred Compact

The language governing the Permanent School Fund in the Minnesota Constitution reflects a commitment that has endured since statehood. The Constitution provides that the fund includes the proceeds of lands granted by the United States “for the use of schools” and requires that its principal remain “perpetual and inviolate forever.” It further directs that the net interest and dividends from the fund be distributed to Minnesota’s public schools as prescribed by law.

These provisions establish both a present responsibility and a long-term obligation. School trust lands and the revenues they generate are held for the support of Minnesota’s public schools, while the Permanent School Fund is preserved so that future generations of students may benefit as well.

Today, Permanent School Fund earnings are distributed to Minnesota’s public school districts and charter schools on a per-pupil basis.

The school trust land system represents a continuing commitment across generations: assets granted for the support of public education must be managed so that they provide financial benefits today while preserving their value and earning capacity for the future. In that sense, the constitutional framework is a sacred compact between generations of Minnesotans and the public schools those assets were created to support.