LANSING, Mich — Could state workers soon return to Downtown Lansing? It’s a question gaining renewed attention after the latest state budget included language hinting at a stronger in-office presence. But the Lansing Regional Chamber of Commerce is still wondering when — and they’re pushing for answers.
- State budget language encourages a return to in-person work for state employees, with a goal of 80% or higher office occupancy rates.
- The Lansing Regional Chamber of Commerce is seeking clarity from state officials on when and how this return will happen, saying businesses need to plan ahead.
- Downtown business owners are divided—some welcome more foot traffic, while others, like Capital Hippie’s owner, support remote work
- Uncertainty continues, with no official timeline for when state workers might return to offices in Downtown Lansing.
WATCH: New budget calls for more in-person work — But when will state workers return to Downtown Lansing?
The Lansing Regional Chamber of Commerce has sent a formal letter to state legislators, seeking clarity on the timeline and implementation of new state work requirements.
“If they’re not coming back, there’s parking lots sitting empty that we could sell. There’s buildings sitting open that we can sell,”said Steve Japinga of the Lansing Regional Chamber of Commerce. Japinga has been closely tracking economic trends in Lansing throughout the pandemic recovery. While he says the city has made progress, one major component of the downtown economy remains largely missing: state workers.
“We know the workers are important and play a huge role in the downtown economy,” he added.
The 2025-2026 state budget includes language emphasizing the importance of in-person work for state employees. It states:
“The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department.”
It also sets an occupancy goal:
“The department shall comply with requirements set forth by the Office of the State Employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher.”
Despite this, Japinga says the Chamber still hasn’t received clarification from state officials about when or how these requirements will be enforced.
“Like any business, we represent businesses that need to plan. Our clarification to the state is: What are the next steps on this language that was passed?” Japinga asked.
Some local business owners have voiced frustration with the absence of state worker but, owner of Capital Hippie, says she supports remote work if it’s working for the state.
“As long as work from home is going well for the state, who are we to tell them they should be back at work so that I can close my business at 3 o’clock and still make my money? Sorry, but actually I’m not sorry — it’s infuriating to me,” Castle said
While Castle would welcome an increase in foot traffic, she doesn’t blame state workers for the challenges downtown businesses are facing.
Japinga agrees that clarity is key, not only for business owners but for the broader economic planning efforts in Lansing.
“We totally get that and support whatever is going to work best — but just make a decision at the state. It’s been six years, and people are tired of ‘Are you coming back?’”
As of now, it remains unclear when the new in-office requirements will take effect or what enforcement might look like. The Chamber says it will continue to push for answers — and local businesses are watching closely.
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