| When Minnesota became a state, the federal government granted the state land “for the benefit of schools.” While most of the land was sold in the 1880s, DNR still manages 2.4 million acres of school trust land. Net income produced from the land is invested by the State Board of Investment, and the proceeds are distributed to public schools annually.[1]
This revenue was offset by a decrease in the general fund until 2009 when legislation made it additive. In the 2010 session, the Legislature looked to Utah as a model for how to increase School Trust Land revenues.
From the Archives
March 25, 2010 - Raiders of the lost fund - Rep. Denise Dittrich (DFL-Champlin) spent years learning the complexities of public school funding as a teacher, parent volunteer, Anoka-Hennepin school board member and state representative. But until a legislative field trip to northern Minnesota in 2007, she’d never heard of the Permanent School Fund, a perpetual land trust for schools, Session Weekly.
March 19, 2010 - Bill would increase returns from School Trust Lands (press release) - School Trust Lands are an important financial resource for Minnesota schools. The interest and dividends from the Permanent School Trust Fund generated $27 million in 2009 alone. The state’s current School Trust Fund balance is about $615 million, State Representative Denise Dittrich.
March 16, 2010 - School trust lands potential “gold mine” - If Minnesota follows Utah’s lead, it could grow a stealth education revenue source: its 2.4 million-acre Permanent School Fund lands, Session Daily.
March 16, 2010 - Utah trust land activist says Minnesota derives little financial benefit - A Utah school trust land activist told House education committees today (Tuesday, March 16) that Minnesota derives as little financial benefit from its 2.4 million acres of school trust land as any state in the country, ECM capitol reporter.
March 11, 2010 - Dittrich pushes legislation to create agency to oversee trust land - Legislation designed to create an independent agency to oversee more than 2 million acres of school trust land in Minnesota had its first hearing today (Thursday, March 11) in the House, ECM capitol reporter.
June 22, 2009 - Wind turbines, nonferrous mining could earn millions for trust that benefits K-12 education - For more than a century, Minnesota has been earning money by selling timber and minerals found on the state’s school trust lands, St. Paul Legal Ledger Capitol Report.
April 4, 2008 - Education Bill to Provide $28 Million to Schools - The E-12 Education Supplemental Finance Bill would provide $28.8 million in permanent funding directly to Minnesota schools through a major policy change, Minnesota Senate Majority Research.
July 31, 2008 - Lawmakers aim to boost trust land revenue for MN schools - Lawmakers want to know how the state can get more revenue from the 2.5 million acres of land set aside 150 years ago to support schools across Minnesota, Finance and Commerce.
May 30, 2008 - At Issue: Bill goes away, but provisions stay - Money generated by Permanent School Trust Fund lands will now go directly to schools instead of as an offset from the General Fund, resulting in a net increase of $36 per student. These lands were established when Minnesota became a state for the benefit of schools and the money comes mostly from mineral rights and timber sales, Session Weekly.
March 19, 2008 - Legislature taps history for additional education money - The Minnesota Legislature is borrowing a page out of the history books to raise revenues for education in the state, MN Sun Newspapers.
Minnesota Department of Natural Resources
Minnesota School Trust Lands Biennial Report
From the Archives
Together, these two reports provide a good historical context:
[1] March 1998 - School Trust Land Program Evaluation - Examines the performance of the Department of Natural Resources in managing school trust land that was granted to the state by the federal government in the 19th Century for the "benefit of schools." Income from the land is invested and the proceeds are distributed to schools. The performance of the State Board of Investment is also examined, Minnesota Office of the Legislative Auditor.
(Undated) - Minnesota School Trust Lands Biennial Report - Fiscal Years 2002-2003 (July 1, 2001 to June 30, 2003)
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