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

This bill creates a state loan program to help New Jersey school districts facing significant budget shortfalls avoid eliminating nonmandatory programs. School districts must demonstrate they've already tried budget cuts and tax increases (with at least a 2% annual levy increase over five years) and spent below state adequacy levels in the prior year. The loans prevent cuts to programs like advanced placement courses, sports teams, music programs, and student clubs. The Department of Education will review applications, with county superintendents and State monitors providing recommendations before approval.