Permits school districts to receive loans from State to support operating budget under certain circumstances.

This bill creates a state loan program for New Jersey school districts facing significant budget shortfalls that would force cuts to nonmandatory programs like advanced courses, sports, music, and clubs. Districts must apply after receiving their state school aid notice, demonstrating they cannot resolve the shortfall through program reductions or tax increases while meeting specific criteria, including five years of at least 2% annual property tax hikes. The state will review applications within 30 days and allow districts to delay budget deadlines until a decision is made. The program aims to prevent cuts to educational offerings while ensuring districts have explored other budget options.