VERMILLION, S.D.(WNAX)- Construction of the new elementary school in Vermillion is underway despite rising costs and supply chain issues.

Superintendent Damon Alvey says they have a lot of the dirt work done.

Alvey says the costs of almost all construction materials continues to rise.

Alvey says there is a long lead time in getting much of the material they need.

While school district voters approved a thirty-three million dollar bond, costs are expected to go over that figure. Alvey says the school board approved covering extra costs with capital outlay bonds.