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    Roles & Responsibilities

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    Several state government bodies participate in the management or oversight of school trust lands and the revenue they generate. Government bodies that participate in management of the real property assets include:

    • The Department of Natural Resources (DNR) manages the state’s school trust lands. The department also advises the Legislative Permanent School Fund Commission (LPSFC) and Governor on school trust lands management issues, and coordinates with the Office of School Trust Lands (OSTL) on strategies designed to strengthen the trust real property portfolio and position it for long-term revenue generation.
    • The Office of School Trust Lands (OSTL) advises the Governor, Executive Council, LPSFC and DNR on decisions, policies and approaches relating to school trust lands management. OSTL is required by law to develop long-range comprehensive strategic plans to ensure efficient management of the trust’s assets, and propose legislative initiatives to secure the maximum long-term revenue from those assets.
    • The Legislative Permanent School Fund Commission (LPSFC) advises DNR and OSTL on the management of school trust lands. The commission is required to review statutes and recommend any changes necessary for “provident utilization” of school trust lands and to report annually to the Legislature with recommendations to secure long-term economic return for the Permanent School Fund.
    • The Executive Council approves various timber management, iron ore, nonferrous metallic mineral and certain other long-term leases. The Executive Council is comprised of the Governor, Lieutenant Governor, Secretary of State, State Auditor and Attorney General.
    • The Land Exchange Board approves the exchange of public lands of the state for other public or private lands. The members of the Land Exchange Board are the Governor, the Attorney General and the State Auditor.

    Government bodies that participate in management of the financial assets include:

    • Minnesota Management and Budget (MMB) manages the Permanent School Fund’s financial assets. MMB deposits and transfers revenues to and from the Permanent School Fund.
    • The State Board of Investment invests the Permanent School Fund’s financial assets. How well these investments perform determines how much revenue will be available for school districts and charter schools.
    • The Department of Education (MDE) distributes funds to the state’s public school districts and charter schools in semi-annual payments. MDE allocates these payments based on “the number of pupils in average daily membership during the preceding year.”
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