April 4, 2005

Dear Fellow Nebraskans:

I am very pleased to write to you this week with an update on our efforts to promote economic vitality across Nebraska. It was my great honor to proclaim March 28 – April 3, National Community Development Week in Nebraska and to recognize the efforts of several communities for their vision and commitment to promoting economic development during the past year.

Created to promote the value of the Community Development Block Grant (CDBG) program, Community Development Week was an opportunity to pay tribute to the extraordinary efforts of Nebraska’s communities. I was honored to present awards recognizing the development efforts of the communities of Bassett, McCook and Ord. From performing updates to downtown infrastructure, supporting local tourism, and helping businesses grow, each of these communities have made good use of the CDBG program to encourage local development.

I also had the opportunity to visit the town of Central City recently to announce more than $500,000 in CDBG funding. The grant was just one part of the total funding that came together to help bring a company looking to create 100 jobs in the community. The company has already hired more than 60 area residents, and hopes to employ around 200 workers by the end of the year.

One hundred new jobs would have a significant impact on Lincoln or Omaha, so for a town with a population of nearly 3,000, this is truly an incredible project. I want to take this opportunity to applaud the efforts of Central City economic development officials, as well as local leaders and businesses for their role in helping to bring so many new jobs to the heart of our state.

Here in Nebraska, the CDBG program has helped small towns and villages update infrastructure, plan for future development, and attract new jobs. It is a program that has helped our state build economic strength and vitality one business – and one community – at a time. It has helped create new partnerships with local government and economic development organizations, resulting in a collaborative approach to economic vitality.

Nebraska’s CDBG funding is made available by the U.S. Department of Housing and Urban Development, which empowers states to administer funding to worthy development projects. The future of this very valuable program is uncertain, as the federal budget proposes reductions to CDBG funding in favor of some broader goals.

Newly released statistics from the Nebraska Department of Economic Development show that CDBG funds have helped create more than 2,400 jobs in Nebraska over the last five years. Just as important is the fact that $69 million in CDBG funding has helped communities access an additional $530 million in investments from public and private partners. What this means is that for every dollar invested in Nebraska communities through the CDBG program, local partners have matched the funding by more than seven dollars. That is an extraordinary return on an investment.

I am certainly aware that budget priorities must be set at both the state and federal levels, and I respect the challenges our federal representatives face. However, this program has an extraordinary impact on development, has great value for small towns, and is important to growing our state economy.

In Nebraska, it is a strong program that has been well-managed and helps provide valuable assistance to the communities that need it most. The CDBG program continues to support our goal of revitalizing and strengthening our communities. My hope is that Congress will recognize the value of this program and work to preserve its funding.