Denver's Office of Economic Development said Wednesday it has no choice but to return $648,000 of federal funds earmarked for work force development.

Representatives from the economic development office struggled to explain the rescission request at Tuesday's mayor-council meeting after council members questioned the rationale.

"The Workforce Investment Act funding rescission was the result of an administrative decision made by the U.S. Department of Labor in the spring of 2008 and not a policy decision that could be made at the local level," Director Andre Pettigrew said in a memo to City Council.

One council member called the decision odd, because so many people have lost their jobs and need to be retrained.

Also, work force centers are reporting an increased demand.

According to Pettigrew, the unemployment rate at the time of the labor department's decision was "very different than it is today."

In April 2008, Denver's unemployment rate was 4.9 percent, or 15,190 unemployed people. In December 2008, it was 7.0 percent, or 24,000 unemployed people.

"Obviously," Pettigrew wrote, "this administrative decision was made in an economic growth cycle that is not present today."

On Tuesday, council members asked if there was a way to keep the money in Denver.

"No, there is no recourse," Pettigrew wrote.