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 permits districts to delay budget submissions and related deadlines while awaiting a decision on their loan applications, ensuring that they can maintain educational services during financial difficulties.

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 financial history, including tax levy increases. The Commissioner of Education will review applications, considering recommendations from the executive county superintendent and any appointed State monitors. If a loan application is denied, the commissioner must provide a written explanation to the district's superintendent. The bill also allows the commissioner to adopt necessary rules and regulations immediately to implement the act.