Block grants can make a difference

Two political leaders with ties to McCook, Gov. Dave Heineman and U.S. Sen. Ben Nelson, are among a growing number of government officials speaking out in favor of the continuance of the Community Development Block Grant program.

Nelson, who was born and raised in McCook, voted with 65 other U.S. Senators earlier this month to restore block grant funding to the federal budget. And Heineman, who attended grade school in McCook, spoke out Tuesday, saying, "This is a strong program that is well-managed. My hope is that Congress will recognize the value of the program and continue its funding. This program is vital to rural Nebraska."

Nelson and Heineman's former home, McCook, is one of the best examples of the value of the Community Development Block Grant program. This is illustrated by the CDBG grants awarded to Red Willow Dairy and Three Star Dairy in 1998. Not only did the block grants, totaling $540,000, bring two large milking operations to Red Willow County, but they also spawned other economic development projects. This was possible because loan repayments from the dairies were used for other ventures, including loans of $54,000 to Doak Construction, $70,000 to Pet Pros, $55,000 to Silverstone, $15,000 to Jonzeez Java, and $200,000 to Pawnee Aviation.

As those loans are paid off, they, in turn, will be used to assist other projects. "We have a number of new requests pending," said Rex Nelson, executive director of the McCook Economic Development Corp. Nelson is a strong proponent of the Community Development Block Grant program, calling it the best tool rural communities have to inspire economic development.

One of the biggest economic success stories in McCook history -- Valmont's decision to locate here -- was aided greatly by the availability of block grant funding. And, most recently, a military software firm, 21st Century Systems, located in McCook with the help of an $180,000 CDBG grant.

McCook's use of the Community Development Block Grant program is not unique. Similar stories are happening in towns all across America. In many cases, the CDBG funds are the difference between continued decline in rural areas, instead of hope for growth.

We salute Sen. Nelson and Gov. Heineman for recognizing that fact. And we urge other American political leaders to join them in saving the critically important Community Development Block Grant program.