SF 3593 Minnesota Senate · 2025-2026 Regular Session

Constitutional Amendment proposal to modify the permanent school fund investment, management, and distribution policy

SF 3593 proposes a constitutional amendment to change how Minnesota's Permanent School Fund calculates annual distributions to school districts. It replaces the current "investment income" formula with a new "distributable amount" based on 4.5% of the fund's average net asset value over the previous three fiscal years. This change aims to ensure more stable, predictable annual payments while preserving the fund's long-term value for future school funding. The amendment requires voter approval at the 2026 general election and would take effect July 1, 2027. School districts across Minnesota would directly receive these revised annual distributions.

Bill status died 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 17, 2026 Last action May 6, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

2nd Engrossment → 3rd Engrossment · 3 edits · Apr 15, 2026

MINOR

This bill updates the permanent school fund's investment policy to prioritize preserving purchasing power and balancing needs for current and future beneficiaries. A key financial change reduces the portion of gains used to offset future losses from 5% to 4.5% of the fund's average value. The update also clarifies that reasonable administrative costs can be paid directly from the fund.

FISCAL

Reduced the percentage of investment gains allocated to offset future losses from 5% to 4.5% of the fund's average net asset value.

Added authority to pay reasonable and necessary administrative costs directly from the permanent school fund.

REQUIREMENT

Updated the fund's management goal to explicitly require balancing the needs of current and future beneficiaries while preserving purchasing power.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 27, 2026

Upper · Passed

Comm report: To pass

upper

Apr 15, 2026

Upper · Passed

Comm report: To pass as amended and re-refer to Rules and Administration

upper

Mar 23, 2026

Upper · Passed

Comm report: To pass as amended and re-refer to Finance

upper

Mar 5, 2026

Upper · Passed

Comm report: To pass as amended and re-refer to State and Local Government

upper

Feb 17, 2026

Committee

Referred to Education Finance

upper

Feb 17, 2026

Introduced

Introduction and first reading

upper

1 primary · 4 co-sponsors