NJ S1577

Establishes the "School District Budget Relief Loan Account" within the New Jersey Department of Education as a nonlapsing, revolving fund to provide loans to school districts facing significant budgetary shortfalls.

Loans are intended to prevent elimination of nonmandatory programs such as advanced placement courses, kindergarten, sports teams, student clubs, honor societies, musical programs, and student government.

Districts applying for loans may delay budget submissions, public hearings, and nontenured staff notification deadlines until a loan decision is made.

Eligibility requirements include demonstrating spending below adequacy the prior year and showing at least 2% annual general fund tax levy increases for each of the five preceding years.

Applications must be reviewed by the executive county superintendent and any assigned State monitor before submission, with the Commissioner required to approve loans when State monitors confirm budget reductions and tax increases are insufficient to address shortfalls.