This bill authorizes the forgiveness of up to $10 million in funds owed to the State by public school districts that have borrowed money for their general fund budgets since the enactment of P.L.2018, c.67. The Commissioner of Education and the State Treasurer are tasked with forgiving this debt, which includes loans and advanced State aid payments, upon the approval of applications for borrowing made prior to the enactment of this act. The bill aims to alleviate financial hardships faced by school districts due to significant cuts in state aid, particularly those affected by the implementation of S2, which has led to drastic reductions in funding and subsequent program cuts.

The bill highlights the struggles of certain school districts, including one represented by the sponsor, which has experienced a reduction of over $22 million in state aid, resulting in severe budget shortfalls and the elimination of essential programs. The sponsor argues that the state should forgive these debts as a temporary measure while a more permanent solution to the school funding crisis is developed. The legislation is intended to provide immediate relief to districts facing financial difficulties due to the state's funding policies.