Southern Minnesota Initiative Foundation outlines recent grants in Houston County, asks for 5% increase in FY26 contribution

Aaron Johnson, philanthropy director for the Southern Minnesota Initiative Foundation (SMIF, referenced in the meeting as "Smith"), presented an overview of the foundation's programming and recent investments in Houston County during the Sept. 16 meeting.

What SMIF does and recent activity in Houston County

Johnson described SMIF as a donor-supported foundation serving 20 counties in south-central and southeastern Minnesota, focusing on entrepreneurship, early childhood development and community vitality. He said SMIF has invested more than $170 million into the region since 1986 and provides loans, grants and technical assistance.

Johnson listed recent Houston County-specific activities and totals over the last three years:

- Early childhood grants and training: SMIF said it awarded a $15,000 early care and education grant for a program identified as Ridgeway Community School (noted in the meeting as having a Houston address but actually in Winona County; Johnson corrected the record). SMIF reported distributing early-literacy books to Houston-area programs (example grants of $4,000 and other book distributions). SMIF reported $52,400 in direct early-education grants in the last three years.

- Entrepreneurial and community grants: examples included $20,000 to Caledonia to support an e-navigator position, $50,000 to Kitty's Cafe in La Crescent, and repeat REV program stipends to Caledonia of $7,500 (2023 and 2024). Johnson said SMIF made 11 loans and 171 grants in the county to date, with about $2.6 million invested in Houston County overall and $163,339 in leveraged support in the last three years.

SMIF request to the county

Johnson asked commissioners to consider a 5% increase to the county's fiscal-year 2026 contribution, which he said would bring the county contribution to $3,937 (the requested new contribution figure was provided by Johnson during the presentation).

Corrections and clarification

During the presentation a county official noted a likely address/recording error for the Ridgeway grant, which Johnson acknowledged and said he would correct in SMIF materials.

Why it matters

SMIF's local grants and loans support early-childhood development, local entrepreneurs and small-town revitalization projects; county support leverages private philanthropy and can be used for partnership grants, technical assistance and capacity-building efforts across multiple communities in the county.

Next steps

Johnson thanked the board and asked commissioners to consider SMIF in the 2026 budget process; he suggested staff and SMIF follow up on partnership opportunities.