Sioux Falls Workforce Development a Victim of Slow Sales Tax

SIOUX FALLS, S.D. (AP) — Workforce development efforts in Sioux Falls are being scaled back due to softening sales tax revenues.

The Community Development Department last year made half a million dollars available for a workforce development grant program for schools, nonprofits and businesses.

About $300,000 was used by six groups, prompting the City Council in its 2016 budget to set aside $350,000 for another grant round. But the Argus Leader reports City Hall is now scaling back the program to $100,000, and will use the difference to help balance the budget.

Economic Development Coordinator Mike Gray says sales tax revenues aren't growing at the projected rate, and spending must be reduced.

Councilwoman Christine Erickson says she sees the need for saving money but that it's unfortunate workforce development resources are taking a hit.