Proposed school fund amendment could boost Perham area funding

Minnesota voters could decide next November whether schools in Perham and across Otter Tail County get a bigger annual check from the Permanent School Fund. Under HF3900, the payout would rise from 2.5% to 4.5% of the fund’s three-year average net value, lifting the current per-pupil payment from about $68.24 to $95.53 if the proposed constitutional amendment reaches the ballot and wins approval.

The fund itself dates to 1858, when Minnesota became a state and received federal land grants. It is tied to revenue from timber, minerals and land on about 2.5 million acres of School Trust Lands, and it already sends annual payments to every public school district and charter school in Minnesota. During the 2024-25 school year, the Minnesota Department of Education distributed a record $58 million from the fund to 329 public school districts and 181 academies and charter schools statewide. School trust officials put the increase at 107% over the past decade.

For Perham-Dent Public Schools, the proposal would not create a local levy or a new tax bill. The higher distribution would raise the annual school trust payment by nearly 28% without touching the state general fund. The change would also buffer districts still dealing with budget pressure after a $250 million special-education funding cut and an outdated compensatory-revenue formula.

The question has already cleared both chambers of the Minnesota Legislature with broad bipartisan support, passing the House 133-0 and the Senate 59-8. Unlike ordinary bills, constitutional amendments approved by lawmakers go straight to voters instead of the governor, and this one would appear on the November 2026 ballot if the House completes final action on the Senate’s change.

That would give voters in Perham, Dent and the rest of Otter Tail County a direct say on the proposed change starting July 1, 2027. The Permanent School Fund’s principal was about $2.2 billion to $2.3 billion in 2025.