The bill amends the existing law regulating the disposition of surplus funds in the state treasury by adding a new section, 2g. This section allows the state treasurer to provide interest-free loans from surplus funds to school districts or intermediate school districts if the general appropriations bills for the upcoming fiscal year are not enacted by October 1. The loan amount is capped at the amount the district received from the school aid fund for the same month in the previous year and is limited to a maximum duration of one year.

Additionally, the state treasurer has the authority to set further terms for these loans. The definitions for "intermediate school district" and "school district" are aligned with those provided in the revised school code. This amendment aims to ensure that educational institutions have access to necessary funds during periods of budget uncertainty.

Statutes affected:
House Introduced Bill: 21.141, 21.147