Faced with tight budgets, some innovative school districts and other public institutions are turning to an unusual source to raise some extra money: the online auction house eBay Inc., the world's largest auctioneer.

Unloading everything from vacant buildings to old buses and even fire trucks, schools and other municipalities have found that the internet greatly increases the number of potential buyers who can bid on used equipment and—in some cases—is more cost-effective than holding a local charity auction.

"Either individuals associated with schools or individuals employed by schools have told us that eBay is great way to make money," said Kevin Pursglove, senior director of communications for the company.

In South Dakota, officials at the Elm Valley School District turned to eBay after local attempts to sell the district's 81-year-old Barnard School produced only one bid.

The idea was to reach potential buyers outside of the immediate market, said district technology director Cindy Rall, who helped facilitate the process.

The school eventually was posted on eBay under a 10-day listing, she said. It sold in less.

While the school received at least a dozen bids from potential buyers nationwide, the winning bid of $49,000 went to a New Mexico man, who has yet to announce his plans for the building.

Randy Barondeau, superintendent of Elm Valley School District, said the deal includes the 14,054-square-foot school building and a 2,585-square-foot multipurpose building. He said the purchase price is the property's appraised value.

Originally, Rall said the district had hoped to make a substantial profit off of the sale. But the high bid of $63,200 fell through after a Texas man's plans to use the school as a bed and breakfast or technology-type business never materialized.

In January 2002, district residents voted to close Barnard School, where students in grades K-6 attended classes. The district's students in grades K-12 now attend school in the city of Frederick.

Rall said the district was forced to abandon the building because it did not meet handicapped access requirements, among other things. "We had a beautiful building, it just didn't fit our needs," she said. "Down the road it was going to be a liability for us."

eBay is an option the district will consider in the future, Rall said. Aside from a few minor difficulties associated with the closing, the process was altogether easier than selling the building through a traditional auction, she said, adding, "Other than responding to eMails, it really was less work. It's definitely an option to look at."

Elm Valley isn't the only district that has used eBay to sell off used equipment. Kentucky's Fayette County Public Schools began selling surplus school buses on eBay last year as a way to unload retired buses and raise extra cash.