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 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 submission 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 financial history. The Commissioner of Education will review applications, considering the necessity of the loan for maintaining educational standards, and will provide written explanations for any loan denials. The bill also grants the Commissioner the authority to adopt necessary rules and regulations to implement the act immediately upon filing.