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State lawmakers in the last session in St. Paul found at least one method to increase funding for public schools without raising taxes, and it was approved nearly unanimously. The increase can be achieved through a hike in the distribution amount from the School Trust Lands Fund, but it will have to be authorized by a vote of the people.

Minnesota set aside two sections in every township as public School Trust acreage upon becoming a state in 1858. Congress later granted 8.1 million acres of federal land for the Trust, which was to be managed to benefit the public education system.  

Over the years many of the acres were sold and the proceeds went into the fund and were invested. Additionally, proceeds from forestry, mineral extraction and other production profits have gone into the Trust.

The people of Minnesota will be asked to vote in the November General Election to approve an increase in the Trust distributions— from 2.5 percent to 4.5 percent.

The vote would allow for distribution starting in 2028.  

The percentage is calculated from a three year average of the net asset value.  In March 2025 a report to the legislature put the Fund principal at $2.2 billion.

Checking with the finance directors for the North Branch and Chisago Lakes Schools, the districts anticipate increased revenues if the voters approve. The current funds received by North Branch were $201,596, which would increase by 40 percent.  Todd Tetzlaff said the formula sends $68 per pupil now and it would go to $81 per pupil if the percentage is increased.

Chisago Lakes Director of Business Services, Robyn Vosberg-Torgerson, said the district received $242,662 in 2025-2026 and the voter-approval would hike this by 40 percent.  The new distribution amounts would become payable in 2027.

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