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KAROUB REPORT – JANUARY 2025
Jan 24, 2025

The 103rd Michigan Legislature held their first session days of the 2025-2026 term on Jan. 8. The House of Representatives unanimously elected Representative Matt Hall (R-Richland) as Speaker and Representative Rachelle Smit (R-Shelbyville) as Speaker Pro Tempore. Speaker Hall announced he is restructuring the House Appropriations subcommittees. He established and seated the House Select Committee and appointed leaders of the House Appropriations Committee and House Judiciary Committee.

Karoub Associates added two experienced professionals to its team: Madeline Fata has a robust background in local government, transportation, and environmental policy. Mike Wiskniewski served as deputy legislative director for the Michigan House Republican leader and the Michigan House Republican Caucus Services.

The House passed minimum wage and sick leave bills on Jan. 23. Under HB 4001, the minimum wage will be $12 per hour effective Feb. 21, 2025 and increase yearly until it reaches $15 per hour on Jan. 1, 2029. Starting in 2030, a formula based on inflation will be used. HB 4001 maintains the tipped wage at 38% of the minimum wage; reduces wages for employees under age 18 from 85% of the general minimum wage to 75% of the minimum wage; and sets the training wage for those under age 20 at 75% of the general minimum wage during their first 90 days of employment. 

HB 4002 exempts employers with less than 50 employees from being required to provide one hour of paid sick time for every 30 hours worked, up to a maximum of 72 hours per year. It authorizes employers to provide at least 72 hours of paid sick time at the beginning of the year, rather than requiring accrual. HB 4001-4002 are headed to the Senate, which introduced its own proposals.

Governor Whitmer will deliver her 2025 State of the State Address on Feb. 26, before a joint session of the House and Senate. She will share her plans for creating jobs, lowering costs, and investing in education. The address will be broadcast live on local TV channels, online at Michigan.gov/StateOfTheState, and on Facebook and YouTube.

At the Jan. 10th Consensus Revenue Estimating Conference, the House Fiscal Agency, Senate Fiscal Agency, and Treasury revised upwards their projections for Fiscal Year 2024-2025 revenue by $457.7 million General Fund (GF) and $312.7 million School Aid Fund (SAF), for a combined $770.4 million. The overall projection is there will be nearly $600 million more revenue (GF/SAF combined) in the current budget year, and over $1 billion next year, compared to prior estimates.

For more details, click here for the January 2025 Karoub Report.


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