School Trust Lands
State law provides that it is the goal of the permanent school fund to secure the maximum long-term economic return from the school trust lands consistent with the fiduciary responsibilities imposed by the trust relationship established in the Minnesota Constitution, with sound natural resource conservation and management principles, and with other specific policy provided in state law. Minnesota Statute, Section 127A.31.
Revenue generated from school trust land is deposited into the permanent school fund which is managed by the State Board of Investment. Interest and dividends from the permanent school fund is distributed to schools districts based on the number of students.
Revenue from the school trust lands comes from:
- Mineral Leases - Iron Ore/Taconite, Nonferrous Metallic Minerals, Industrial Minerals, and Others
- Timber Sales
- Surface Leases - Gravel, Hunting Cabins, Miscellaneous, Agriculture, and Others
- Utility Licenses
- Sale of Land
- State Forest Campground Fees
The revenue from school trust lands contributes on average $17 million per year to the permanent school fund. The interest and dividends generated from the fund are distributed to Minnesota's public schools. On average the permanent school fund annually provides K-12 schools with about $25 million in payments from investment interest and dividends. This funding is in addition to the general education aid that the state provides to all school districts.