S.C. Schools Await Ability to Build Interest-Free

Columbia, S.C.

A South Carolina bill heading to the governor's desk could help rebuild dilapidated schools across the state, including a middle school that has become a symbol of the nation's education construction woes.

"This could be the answer to prayers for us," said Dillon 2 Superintendent Ray Rogers. "I thought, 'Where's the punch line? Somebody's pulling an April Fool's joke on me in May.' I'm elated for the kids. It makes me feel good to know help's on the way."

The measure passed by lawmakers Thursday as the legislative session drew to an end allows districts to borrow up to $20 million interest-free to build or renovate schools. It gives the state Education Department the authority to divvy up funds from a new type of bond created by the federal stimulus package, which allows lenders to receive a federal tax credit equal to the interest...