Iron mining supports high-quality education for all Minnesotans - Hometown Focus

 

IRON RANGE – Iron mining is connected to a lot of facets of education including K-12 education and all University of Minnesota schools. Minnesota iron and taconite is mined out of leased land. Some of that land is owned by the state, and the state collects royalties for the ability to use and sell those minerals. Those royalties are deposited in the Permanent School Lands Trust Fund and the University Trust Fund.

Iron mining in Minnesota has contributed 90 percent of the revenue for the Permanent School Lands Trust Fund. This fund is used to help cover the costs of education for every child in Minnesota and holds a current fund balance of $1 billion. Every Minnesota child in public school receives between $30-35 per year from the Permanent School Lands Trust Fund.

While this may seem like a small amount, think back to any recent school levies. Many of those levies are asking for around $10-20 per student per academic year. School levies allow school districts to raise property taxes to help cover the cost of education. By having the permanent school lands trust fund, property owners across the state are able to keep their property taxes lower.

Iron mining also helps pay for education on the Iron Range through production taxes. Altogether money distributed from the School Lands Trust account amount to $28 million a year. The Minneapolis School District receives roughly $1,236,580 from that account.

Another little known fund is called the Permanent University Trust Fund. This University Trust Fund was created in 1851 to support the activity and establishment of the University of Minnesota. The Permanent University Trust Fund annually gives scholarships to Minnesota residents attending any University of Minnesota school. Around 1,500 students receive a scholarship to attend University of Minnesota schools, and those scholarships come largely from iron ore mining or timber sales.

In the last 20 years the University Trust Fund has been used to support students directly at University of Minnesota schools. So far, the University of Minnesota has received $30 million for scholarships for Minnesota students. The Twin Cities campus has received around $20 million for scholarships for Minnesota students, while the Duluth campus has received $7 million.

Altogether iron mining supports the education of every public school kid from the time they enter kindergarten until they graduate. Iron mining’s contribution to education costs cannot be undervalued.

About the Iron Mining Association

For 25 years, the IMA has represented the thousands of people who work in Minnesota’s iron mines and companies across the nation that provide goods and services to the iron mining industry. In 2017, the association expanded to include businesses, organizations, and individuals who do not work in iron mining but want to show their support for the industry, which contributes more than $3 billion to the state’s economy each year. For more information on the IMA, visit www.taconite.org

Kelsey Johnson is president of the Iron Mining Association of Minnesota.