February 4th-14th, 2025

The Michigan Senate has passed a bipartisan bill, SB 8, that will gradually raise the tipped minimum wage to 50% of the regular minimum wage by 2031, rather than completely phasing it out as originally planned. The bill, introduced by Democratic Senator Kevin Hertel (D-Saint Clair Shores), received more support from Republicans than Democrats, with a 20-12 vote in favor. Under the bill, the tipped wage will remain at 38% for the rest of 2025, then increase by 2% annually until it reaches 50%. This compromise comes as the Legislature faces a February 21 deadline to amend the minimum wage and Earned Sick Time Act (ESTA) before they take effect.

SB 8 is tie-barred to HB 4002, the ESTA bill, which remains in a Senate committee. As a result, the minimum wage changes cannot be signed into law without also changing the paid sick time bill. While many businesses and Republicans view the bill as a necessary adjustment to avoid job losses in the restaurant industry, some Democrats and labor advocates criticize it for rolling back worker protections originally mandated by a court order.

Despite the mixed response, legislative leaders view the bill as a step toward a bipartisan solution. Senate Majority Leader Winnie Brinks (D-Grand Rapids) and Hertel expressed optimism about continued negotiations, while Republican leaders emphasized the need to balance business interests with wage increases. House Speaker Matt Hall (R-Richland Township) highlighted the importance of compromise, stating that the deal should benefit workers rather than just businesses or labor unions. With the deadline approaching, both parties acknowledge more work is needed to finalize a consensus on the state’s wage and sick leave laws.

Governor Gretchen Whitmer recently presented her Fiscal Year 2025-2026 Executive Budget Recommendations, kicking off Michigan’s budget season. With a total proposal of $83.5 billion—the largest in state history—the budget reflects a $1.2 billion revenue surplus and prioritizes lowering costs for residents, creating jobs, investing in education, supporting seniors, and strengthening public safety. Key highlights include continued tax relief through the Working Families Tax Credit, expanded universal pre-K, free school meals for all public school students, and increased investment in workforce development. Additionally, the proposal allocates billions toward infrastructure improvements, child care support, and special education funding.

Other notable investments focus on public health and safety, including $46.8 million in opioid settlement funds, increased Medicaid access for seniors and individuals with disabilities, and a $42.8 million tax on vaping and nicotine products (see Governor Recommends New Tax Targeting Youth Nicotine Consumption for more info). The budget also includes major investments in Michigan’s defense industry, cybersecurity, and government modernization. As the legislature begins negotiations, these proposals will shape the final state budget ahead of the July 1 deadline.

Governor Gretchen Whitmer has appointed Patti Tremblay to the Ingham Circuit Court, filling the vacancy left by former Judge Joyce Draganchuk’s resignation. Tremblay is currently serving as the governor’s director of legislative affairs, but has previously held the role of chief legal counsel to House Democrats and other positions within the governor’s office. She will serve until January 1, 2027, and must run for election in 2026 to retain the seat.

Filling Tremblay’s vacancy will be Kara Cook, who previously served as the state’s chief climate and energy strategist. Other staffing changes to the Executive Office (EOG) include Zoe Ahlstrom’s promotion to policy director (previously the EOG’s deputy policy director), and Emma Young’s promotion to education policy advisor (previously a policy analyst for the EOG).

Governor Gretchen Whitmer has introduced a proposal to tax vaping products and nicotine pouches at the same 32% wholesale rate that currently applies to non-cigarette tobacco products like cigars and chewing tobacco. Named in the governor’s executive budget recommendation, her administration argues that this change would close a loophole in state law that allowed these nicotine products to avoid taxation. The executive office estimates the new tax could generate approximately $57 million annually, with funds earmarked for programs focusing on smoking prevention, expanded healthcare access, and adolescent mental health initiatives.

Thirty-two states already tax vaping products in some form, due to studies that link higher tobacco taxes to reduced consumption. With a CDC survey indicating that 14% of Michigan high schoolers have used vapes in the past month, all can agree that action is necessary. However, Whitmer’s proposal is expected to face opposition in the Michigan Legislature, where the House Republican majority has historically resisted new taxes.

Governor Whitmer has announced appointments to several Michigan boards and commissions. Among the list of changes are the following new and returning appointees:

• Health Information Technology Commission: Janée Tyus (succeeds Renee Smiddy)
• Michigan Council for Rehabilitation Services: Laurie Penfold (succeeds Karen Schulz)
• Governor’s Task Force on Child Abuse and Neglect: Claudnyse Holloman (reappointed)
• Michigan Board Optometry: Dr. Paul Hodge (succeeds Lisa Webb Sharpe)
• Board of Interpreters for the Deaf, Deafblind, and Hard of Hearing: Miriam Andare Cuevas (reappointed), Myles Hudkins (succeeds Leslie Pertz)
• Michigan Developmental Disabilities Council: Iris Mehler (reappointed), Alexandra Hayes (succeeds Angel Irvin), Colleen Sullivan (succeeds Elizabeth Kohler), Jason Reaves (reappointed), Ray Schuholz (reappointed), Sheryl Stumbaugh (reappointed), and Nicholas Gable (succeeds Mark McWilliams)

For a complete list of the governor’s board and commission additions, click HERE.

Earlier 2025 appointments can also be viewed in GOVERNOR WHITMER’S LATEST APPOINTMENTS.