NJ S3320

Establishes the "School District Budget Relief Loan Account" in the 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 notifications until a loan decision is made; program begins in the 2024-2025 school year

Applicants must demonstrate they spent below adequacy the prior year, increased their general fund tax levy by at least 2% in each of the preceding five years, and explain why budget cuts or tax increases are insufficient

Commissioner must approve loans for districts with State monitors if the monitor confirms budget reductions and tax increases cannot meet the shortfall; denied applications require written explanation to the district