This bill mandates that the Commissioner of Education allow certain school districts facing a reduction in State school aid or those subject to a six percent State aid growth limit to submit their budgets after the enactment of the appropriations act for the fiscal year ending June 30, 2026. Specifically, this provision applies to districts that will experience a State school aid reduction or a limitation on State aid that exceeds their unused tax authority, as determined by existing law. The bill also grants the commissioner the authority to adjust the school budget calendar to accommodate these changes, including implementing a compressed schedule for budget enactment.

The legislation is designed to address the financial challenges faced by school districts that may be adversely affected by the proposed State aid reductions or growth limits outlined in the Governor's Budget Proposal for fiscal year 2026. By allowing these districts to submit their budgets later, the bill aims to provide them with greater flexibility in managing their finances in light of potential funding cuts. The act is set to take effect immediately upon passage.