Corrected entry: It can't have been 15 years since Michael's mother's suicide. Laurie was a baby, not a two year old toddler.
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Correction: You're forgetting to account for all the time that passes between the beginning of the film and when Michael's mother commits suicide. There's specifically a nearly year-long jump between the murders and the sequences of Michael's incarceration at Smith's Grove. (The movie says "Eleven Months Later.") And then even more time passes before Michael's mother commits suicide. (As evidenced by the fact we see changing weather/seasons outside as people arrive at Smith's Grove.) So Laurie (who was a baby that was probably around a year old at the start of the film) was indeed a toddler by the time Michael's mother committed suicide. So the timeline checks out.
TedStixon