Last week, the corps said it had run out of money to finish the project's first phase, but federal officials said Monday they've found nearly $200,000 left over in their $25 million budget for environmental projects.

The money is necessary to finalize the engineering plan to preserve the East Coast's fastest-eroding beach. The plan could include the use of groins, sand-trapping structures built perpendicular to the beach.

"This is great news," said Phil Gaines, assistant director of the state Department of Parks, Recreation and Tourism. "This is where we were hoping to be at this point in time."

Erosion has washed away 20 island facilities, including restrooms, showers and cabins over the past seven years.

An additional three restrooms, two serving the park's 200 camp sites, are within 30 feet of the high-water mark and are in danger of being washed away.

State officials, who have set aside $4.2 million for the nourishment plan, were concerned the project would be set back at least one year.

Corps officials are hoping to match the state's money with $5 million from the federal government in the 2005 budget.

Alicia Gregory, spokeswoman for the corps' Charleston office, said it's too early to estimate a start date for Hunting Island construction.

"It all depends on funding," she said. "This is a very critical project for us and it has high visibility in our district."

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Information from: The Beaufort Gazette, http://www.beaufortgazette.com