Current amendment expires Dec. 31, 2024, millions of dollars of environmental funding at risk.
What do these projects have in common: creating pollinator habitat at a closed landfill, measuring the impacts of boating wakes on Minnesota shorelines, and acquiring land for Minnesota State Parks? Beyond them all being environmentally focused projects in Minnesota, they are also all funded by proceeds from the Minnesota Lottery.
In 1990, just two years after Minnesotans authorized the establishment of a state lottery, they went back to the polls to pass a constitutional amendment dedicating no less than 40 percent of the lottery’s proceeds (the money remaining after operational expenses, including paying winners) to be deposited into the Minnesota Environment and Natural Resources Trust Fund (ENRTF). The remaining proceeds go to the state’s General Fund. This amendment was renewed in 1998 when voters overwhelmingly approved extending the lottery proceeds dedication until 2025.
With this looming sunset date, Minnesota voters will once again be asked to renew the amendment and dedicate the same percentage of lottery proceeds to the ENRTF, this time through 2050.
Change to increase spending for equity
While the percentage going to the ENRTF would remain the same, the updated amendment includes a prudent change to increase the annual spending from 5.5 to 7.0 percent of the fund’s value.
This additional 1.5 percent of spending would be directed toward creating a more equitable pool of funding for smaller nonprofits, Native Nations, and BIPOC-led organizations. Such a program aims to overcome criticism that the application process for receiving ENRTF funding is so lengthy, complex, and resource-intensive that mainly only the DNR, the University of Minnesota, and large organizations are awarded funding. A new council would oversee the application process for this additional spending, estimated to generate about $20 million a year.
Since its establishment over 30 years ago, the ENRTF has provided more than $875 million to roughly 1,800 environmental projects. This funding is proving especially critical today as less of the state’s General Fund goes toward conservation—less than one percent now compared with more than two percent a couple of decades ago.
The money in the ENRTF originated with lottery proceeds, and those continue to be the biggest funding source by far. However, it has grown in value beyond those proceeds, as the principal balance is regularly invested in stocks and bonds. Eventually, annual growth from investments may surpass contributions from the Lottery.
The ENRTF is similar but distinct from the Legacy Amendment—another pot of money created by a 2008 constitutional amendment. The Legacy Amendment generates revenue through an increase in sales tax and has increased funding for similar conservation projects.
How are projects chosen for ENRTF
Each year, numerous organizations seek funding from the ENRTF. Ultimately, the Minnesota Legislature approves any allocation; however, before this vote, projects undergo a vetting process overseen by the Legislative-Citizen Commission on Minnesota Resources (LCCMR). This 17-member commission comprises legislators and citizens appointed by the governor, Senate, or House.
Last year, after reviewing 218 proposals, the LCCMR selected 101 projects totaling $80 million that were funded by the Minnesota Legislature in 2024. Among the funded projects is one by Parks & Trails Council of Minnesota (P&TC) to acquire land for state parks. This is the first time P&TC applied for funding from the ENRTF. This project will increase our ability to acquire priority state park in-holdings so they are not sold off and lost forever due to a lack of available resources.
Many Minnesotans have a strong appreciation for the great outdoors, and we’ve repeatedly chosen to dedicate important public resources to protecting and enhancing our natural heritage. Last year, P&TC joined 62 other organizations in signing a letter urging the Legislature to place this issue on the ballot in 2024. We’re heartened to see this has happened, and now we look to the citizens of Minnesota to once again step up for Minnesota’s environment and vote YES this November.