House adds school fund advisors

Three members could be added to the Permanent School Fund Advisory Committee, under a bill passed 126-2 by the House May 10.

HF206, sponsored by Rep. Denise Dittrich (DFL-Champlin), would add a House and Senate member of the minority party plus one person with education finance expertise. The bill would also stagger committee terms. It now goes to the Senate, where Sen. Dave Thompson (R-Lakeville) is the sponsor.

The committee has oversight of how the permanent school fund lands are managed by the Department of Natural Resources.

“This change will provide improved consistency and continuity, experience and expertise to the complex issues that this committee addresses, especially when there is a change in leadership like we experienced this year,” Dittrich said. She said instead of providing oversight, the committee has followed the DNR’s lead, meeting about once a year at the agency’s call and adhering to its agenda.

“I do not want to leave the body with the impression that I think this model is highly effective,” Dittrich said.

Members from both parties spoke in support of the bill, but some said it’s just a start to create better accountability for the school lands management.

Rep. Tom Rukavina (DFL-Virginia) said the fund hasn’t seen enough growth while the agency has covered its costs from land use activities. “Until a real trustee is hired to manage the kids’ trust fund lands we will not get to the bottom of this issue and we will have the fund used as sort of a slush fund for the Department of Natural Resources.”

He said there is an estimated $2 billion worth of precious metals under school lands that are leased to mining companies.

Rep. Keith Downey (R-Edina) said the bill “is representative of the fact that we’re no longer going to ignore it. If we don’t pass some of the bills that put a trustee over this potentially multi-billion dollar asset we would be negligent.”

Rep. Carol McFarlane (R-White Bear Lake), recently elected chairwoman of the committee, supported the bill but said the committee is now doing its job. “We have been meeting monthly. We do want to have oversight over the DNR and want to work with them.”