Center for Rural Affairs Criticizes Governor's Proposed Budget Cuts

Release Date: 
11/02/20009
Contact(s): 
Chuck Hassebrook, chuckh@cfra.org, (402) 687-2103 ext. 1018 or John Crabtree, johnc@cfra.org, (563) 581-2867


LYONS, NE - Today the Governor proposed cuts in three crucial rural programs - the Microenterprise Partnership Act, which funds loans, training and technical assistance for small business; the Building Entrepreneurial Communities Act, which makes grants to communities for rural development and the Value Added Agriculture Program which, supports farmer and ranchers to launch new enterprises.


The Center for Rural Affairs criticized the proposed cuts.  "We understand the need for tightening belts in difficult times," said Chuck Hassebrook, Center for Rural Affairs Executive Director.  "But we don't understand singling out small business and rural development for disproportionate cuts, at precisely the time we should be investing in proven strategies to reinvigorate Nebraska's economy and revitalize our rural communities.  Microenterprises typically lead the state out of recession.  During the recession that began in 2000, Nebraska businesses with up to five employees increased jobs by about five percent while larger companies cut jobs."

"These key rural programs have already given to deficit reduction - losing nearly half their combined funding during the regular legislative session earlier this year," said Chuck Hassebrook, Center for Rural Affairs Executive Director.  "Combined funding for the three programs was cut from $2.75 million last year, down to $1.5 million for the current year.  The Governor's current proposal would cut them even further."