School superintendents say South Dakota districts will save a lot of money by using a bonding program available under the federal stimulus package. It lets schools issue bonds at no interest, which cuts repayment costs substantially. Buyers of the Qualified School Construction Bonds get tax credits instead of interest, and they use the credits to reduce their tax bills.

The state Education Department says 13 school districts have been approved for $29 million in bonding authority to raise money for construction or rehabilitation projects this year. The department plans to allocate bonding authority next year to another 11 school districts that applied for the program.

Groton Area School District Superintendent Laura Schuster says her district could save as much as $500,000 in interest payments on a project that will spend $2 million to build an addition to its high school. The project will include a new library, a science classroom and lab and other facilities.

Custer School District Superintendent Tim Creal says his district could save as much as $1 million in interest on a project that will spend $3 million to build an addition to an elementary school in Hermosa. The project will add classrooms and a full-size gym.