The Republican-led Senate passed an expanded personal income tax credit that is likely being eliminated due to a quirk in the new federal tax reform law. Senate Bill 748 S-1 preserves Michigan’s $4,000 personal exemption on its income tax, but increases it to $5,000 by 2021- a $200 increase over the $4,800 exemption level of the SB 748 version; Able-bodied Medicaid recipients would have to work, go through job training or perform community service in order to keep their benefits under House Bill 5317; In the state’s first gubernatorial override in 16 years, the House and Senate pushed into law an accelerated sales tax phase out on used car trade-ins that Gov. Rick Snyder vetoed in July 2017; A Special House Task Force report found 42 areas where mental health services could be improved in the state; Charter schools would receive a share of “regional improvement” property taxes on a per-pupil basis that now go only to traditional schools if legislation (SB 574) approved by the House becomes law; and analysts for the House and Senate fiscal agencies are projecting continued slow and steady growth for Michigan economy through 2020, which means the state’s $10 billon General Fund isn’t likely to keep up with inflation over the next three years and the School Aid Fund, when adjusted for inflation, should remain smaller than it was 10 years ago. These and other legislative initiatives are featured in the January 2018 Karoub Report.