Republicans Push for State Employees’ Office Return, But State Declares No Space Available

Republican legislators in Arizona are pushing for a return to office work for all state employees, a move met with resistance due to inadequate office space, according to the Arizona Department of Administration (ADOA). Senate President Warren Petersen, R-Queen Creek, has introduced Senate Bill 1237, which aims to cut remote work and increase productivity among state employees, linking the rise of telecommuting to the Covid pandemic.

As remote work gained traction, the state sold or demolished much of its office space over the past eight years. ADOA now estimates an urgent need for 1.5 million square feet to comply with the proposed return-to-office mandate. “This would require significant expenditures for state-owned buildings and increased leased space,” an ADOA spokesperson noted in an email.

Petersen has suggested that job cuts should accompany the return-to-office strategy, arguing that many positions could be deemed unnecessary. He emphasized that prior to the pandemic, most state employees worked on-site without major budget cuts during or after the health crisis. “Now would be a good opportunity to audit our state agencies to shrink government and eliminate unnecessary positions to save taxpayer dollars,” he stated.

Statistics reveal that as of December 2024, 41% of state employees were working remotely either full-time or in a hybrid mode, with 64% of state employees in Maricopa County working remotely at least one day per week. ADOA claims these arrangements have saved Arizona over $32 million annually in rent and an additional $58.6 million in deferred maintenance costs since fiscal year 2021.

The concept of remote work is not novel to Arizona, stemming back to a pilot program initiated in 1990 to decrease commuting-related air pollution. This program was formally adopted in 1993. Former Governor Doug Ducey also acknowledged the financial benefits of reduced office space, citing a $9 million savings in rental costs between 2020 and 2022 during the pandemic.

Petersen’s bill mirrors initiatives from higher-level government, including President Trump’s push for federal employees to return to the office and Minnesota’s Gov. Tim Walz’s mandate that requires state employees to be in the office at least half the time. Amendments to the bill now permit remote work for sick employees with prior approval from supervisors.

Opposition is emerging from several state agencies including the State Board of Pharmacy and the Attorney General’s Office. Kam Gandhi, executive director of the Pharmacy Board, indicated that many agencies share concerns regarding space limitations. “There’s a consensus that it won’t be feasible because they simply don’t have the space,” Gandhi remarked.

Moreover, the prospect of losing valuable staff looms large without the option for remote work. Gandhi stressed that hybrid arrangements have been instrumental in both recruiting and retaining employees, countering Petersen’s assertion that remote work hampers productivity. “We’ve made it clear that this hybrid work environment is a privilege,” he said, noting no significant productivity drops in his team.

Richie Taylor, communications director for the Attorney General’s Office, echoed similar concerns regarding recruitment. He pointed out that remote work options are vital, especially in light of stagnant state salaries. “It’s one of our main recruiting tools,” said Taylor, particularly when comparing state salaries to those in larger counties.

According to recent reports, state employee salaries only increased by 1.4% in fiscal year 2024, falling short of the 4.1% average increase for other public and private sector employees in the same period. The shared office space arrangement also complicates the return-to-office logistics for the Attorney General’s Office.

Despite agency concerns, Petersen remains determined. “If leasing of office space is still required, it’s a good time to do so, as commercial real estate values are plunging,” he said. He highlights that employees in the private sector are returning to offices and insists government employees should follow suit.

The bill has already passed in the Senate and is anticipated to move through the House, though it may face a veto from Governor Katie Hobbs, whose office has not commented on the pending legislation.