This bill establishes the School District Budget Relief Loan Account within the Department of Education, allowing school districts facing significant budgetary shortfalls to apply for loans to support their operating budgets. The loans aim to prevent the elimination of essential nonmandatory programs such as advanced placement courses, kindergarten, sports teams, and other extracurricular activities. The bill also allows districts that have applied for a loan to delay their budget submissions and related deadlines until a decision on the loan application is made.

Beginning in the 2024-2025 school year, districts can apply for loans after receiving their State school aid notice. The application process will require detailed information about the budgetary shortfall, its impact on educational quality, and the district's tax levy history. Additionally, districts must first submit their applications to the executive county superintendent and, if applicable, a State monitor for review before proceeding to the Department of Education. The commissioner will consider the necessity of the loan for maintaining educational standards when making decisions on applications, and must provide written explanations for any denials.