Updates About Jobs

The Michigan Senate recently approved SB 723 with bipartisan support. If successful, this bill would increase the total tax capture cap from $1.6 billion to $3.5 billion, set new limits on individual projects, and update eligibility criteria under the Brownfield Redevelopment Financing Act. It also adds new transparency requirements, including enhanced reporting and a searchable database of approved projects, and directs a portion of additional tax capture toward housing, child care, small business, and placemaking programs. The legislation passed 20–13 and has been transmitted to the House for consideration.

The Senate also passed two related bills aimed at strengthening long-term economic planning in the state. SB 213 and SB 214 would create a Strategic Advisory Board within the Michigan Strategic Fund. The board will take on the task of developing a 10-year statewide economic development plan. Once completed, the plan would be updated annually by the Michigan Economic Development Corporation (MEDC). Both bills similarly passed the Senate 20–13 vote before being received by the House.

Separate legislation to revive a modified version of the Good Jobs for Michigan program has also been proposed by Sen. Sam Singh (D-East Lansing). SB 472 and SB 473 were reported unanimously by the Senate Regulatory Affairs Committee and would restart the incentive program, which expired in 2019, with updated requirements related to job creation and wage standards. The bills include additional eligibility and compliance provisions and are intended to help the state’s economic development strategy. Discussion between the House and the Senate on the bills are expected to continue into the new year.

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.

The Stargate company is coming to Michigan. Helmed by tech giants such as OpenAI, Oracle, Nvidia, and Microsoft, the company aims to invest $500 billion in AI infrastructure and development by 2029. Saline Township, Michigan is the 5th location announced out of 20 new AI data centers the company plans to build around the country. The data center’s plans for this rural farming town bring with it a whopping spending estimate of $10 billion.

Back in September, the township board refused to rezone the farmland plot required for building the data center after local residents raised concerns about pollution and the eventual increase in utility costs. However, an agreement was reached when Stargate offered to invest $14 million upfront to the township to go toward fire services, farmland preservation, and the community investment fund, plus an annual investment of $9.6 million into the township’s government and local school for the next 25 years.

Governor Whitmer praises the investment after working with Stargate to secure a deal since the project was first announced. She predicts the building will create 2,500 construction jobs, as well as 450 permanent on-site jobs and 1,500 jobs within the county.