Updates About Economy

As we enter the new year, we will also begin seeing new wages in Michigan, according to the state’s Improved Workforce Opportunity Wage Act. Michigan’s minimum wage is set to increase from $12.48 to $13.73 per hour. Tipped employees, who receive 40% of the minimum wage, will see their hourly minimum wage increase to $5.49 per hour, assuming the employee exceeds the $8.24 tip threshold.

Revenue collections from major taxes and lottery were slightly higher than expected for November, according to a recent November Revenue Report released by the Senate Fiscal Agency (SFA). Compared to November last year, the revenue totals reached $3.0 billion and are up 3%. Revenue from the State Education Tax (SET), individual income tax (IIT) withholding, and Michigan Business Tax (MBT) all came in higher than expected. Net income tax revenue and sales tax revenue were also elevated compared to last year, up 8.3% and 3.6%, respectively. However, net revenue from the repealed Single Business Tax, Michigan Business Tax, and Corporate Income Tax (CIT) collections were collectively 47% lower than last November.

Still, collections to the General Fund came in $95.8 million over expectations. The School Aid Fund also came in at $44.1 million above projections. Because November is the first month for tax collection for the fiscal year, these figures also represent the year-to-date actual vs predicted revenue.

The Michigan Energy giant DTE Gas Co. is asking state regulators to approve an increase in gas rates by 8% for residents and 7.1% for businesses. The company claims they need additional revenue to pay for infrastructure, maintenance expenses, and wage increases. DTE’s 1.3 million gas customers are expected to absorb an increase totaling $237 million starting next October. This amount could be reduced to $163 million if a previously approved infrastructure recovery mechanism surcharge is incorporated into the rates.

This is not the only increase that Michigan consumers have been subjected to in recent history. Last year, DTE raised gas rates by more than $113 million. Attorney General Dana Nessell scrutinized the increases and reaffirmed that her office will work to defend DTE customers. Bob Richard, President and COO of DTE, defended the rate hikes by arguing that the request will allow DTE to continue to invest in the safety and reliability of their energy system while keeping long term costs lower. In early November, DTE’s main competitor, Consumer Energy Co., also raised rates — 8% on residents and 1.4% on businesses.

See Also: AG NESSEL PUSHES BACK ON CONSUMERS ENERGY $436M RATE HIKE PROPOSAL