Sioux Falls, SD (KELO-AM) Southeast Technical Institute President Jeff Holcomb confirmed on Friday that across-the-board layoffs are a "real possibility" because of declining enrollment at STI.
Holcomb says they are looking at all areas for savings, including equipment purchases and future capital projects, but he has told faculty and staff to be prepared for layoffs since 65 to 70 percent of STI's expense is related to personnel. STI has a workforce of about 200.
Ironically, Sioux Falls' very low unemployment rate - a good thing - is a big part of the problem of declining enrollment - a bad thing.
"The unemployment rate and our enrollment rate are directly correlated," says Holcomb, "What we see is that our students are those who go to work, so if there is an overabundence of work, they will be in the workforce."
A final decision on layoffs has yet to be made. STI's final budget approval is scheduled for the first Sioux Falls School Board meeting in July.