Updates About Governor

Governor Gretchen Whitmer and Michigan Legislators are bracing for potential upheaval should the state’s minimum wage law be invalidated by the Michigan Supreme Court. If the court strikes down the existing law, which allows tips to count towards minimum wage, Michigan could see its minimum wage potentially rise to over $13 per hour. Advocates for the wage increase, such as One Fair Wage, believe an increased wage is essential to filling low-wage job vacancies. However, critics in the hospitality industry worry that the prices of food and beverages will rise and layoffs may occur due to restaurant labor costs increasing by 250%. The fate of Michigan’s paid sick leave law also hangs in the balance.

Whitmer and State Lawmakers are considering their options, weighing the need to uphold the spirit of voter initiatives while ensuring the viability of small businesses. Worker advocates are pushing for further increases in the minimum wage to $15 by 2027, while industry representatives emphasize the importance of retaining the tip credit system. The court’s decision, expected by the end of July, could have far-reaching implications for Michigan’s economy and political landscape.

The Detroit Regional Chamber unveiled the agenda for this year’s Mackinac Policy Conference, scheduled from May 28th to May 31st on Mackinac Island. This year’s event will showcase a U.S. Senate debate and panels with leaders in business, politics, and higher education. The debate will feature the top three Democratic and Republican candidates, all competing for the open seat. The vacancy arises as current U.S. Senator Debbie Stabenow prepares to retire from her position following an earlier announcement that she will not be seeking reelection. Other notable items on the conference agenda include speeches from Governor Gretchen Whitmer, Detroit Mayor Mike Duggan, Dan Gilbert of Rocket Companies, and more.

You can find more details on the Mackinac Policy Conference website.

The Michigan State House and Senate approproations subcommittees have issued their respective budget recommendations for the upcoming fiscal year beginning on October 1.

The Senate’s Department of Health and Human Services (DHHS) budget closely aligns with the governor’s proposal in overall funding levels but includes some notable differences. Notable changes include adjustments to funding for the Temporary Assistance for Needy Families (TANF) program, Medicaid reimbursement rates, juvenile justice programs, and various one-time funding items and new programs. Additionally, the Senate introduced boilerplate language aimed at safeguarding the privacy of individuals seeking abortion services in Michigan from out-of-state investigations. The Senate’s proposed budget stands at $37.71 billion (with $6.68 billion allocated from the General Fund), coming in $110 million higher than the Governor’s proposed $37.6 billion budget for DHHS.

On the other hand, the House’s DHHS budget introduces its own modifications to the Governor’s proposal. Notably, the House subcommittee opted to allocate $53.4 million from opioid settlement funds toward opioid recovery and addiction care services. The House also proposed various adjustments to Medicaid reimbursement rates, foster care administration rates, and funding for behavioral health initiatives. Additionally, the House prioritized several one-time projects, including investments in public health initiatives, behavioral health programs, and community violence prevention. The House’s proposed budget amounts to $35.9 billion (with $6.6 billion allocated from the General Fund). Their total budget for DHHS is $1.81 billion less than the Governor’s DHHS budget proposal.

Overall, both the Senate and House Budget Recommendations exhibit nuanced differences from the governor’s proposal, reflecting varying priorities and approaches in addressing key areas such as healthcare, social services, and public health initiatives. While the Senate budget came in slightly higher than the executive budget allocation for DHHS, the House proposal is significantly lower. Updated revenues for Fiscal Year 2025 will be presented on May 17 at the next Consensus Revenue Estimating Conference.