South Dakota city prepares for budget shortfall - KTIV News 4 Sioux City IA: News, Weather and Sports

South Dakota city prepares for budget shortfall

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SIOUX FALLS, SD (AP) -

The city of Sioux Falls is preparing for a possible $1.2 million budget shortfall this year as city officials cut their budgets in response to sluggish sales tax revenues.

The Argus Leader reports that March sales tax revenue growth for the city came in at 2.5 percent, less than the 4 percent increase projected when the 2017 budget was adopted.

Sioux Falls finance director Tracy Turbak says the city's 12 department directors are trying to counter the slow growth by looking for places in their budgets to cut expenses, including limiting overtime hours, use of part-time employees and reducing out-of-state travel.

Turbak said Tuesday the directors expect economic indicators to worsen, with contingency plans prepared to reduce budgets by 5 percent.

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