jhinkley@lsj.com

Compared to other capitals%2C Lansing ranks 46th on poverty.

With a median age of about 34%2C Lansing is one of the youngest capitals in the country.

The decline in manufacturing had a big impact on Lansing.

Lansing ranks in the middle on factors such as population%2C education%2C crime and economic output

Ross Feldpausch liked his job at a local heating and cooling company, but after chatting with a neighbor who works for the state, he saw an opportunity.

In early July, Feldpausch joined the more than 14,000 people in the tri-county area who earn their pay from state government. The 37-year-old Fowler man now is a maintenance mechanic for the Department of Technology, Management and Budget, where his benefits — Michigan offers its employees among the most generous health plans in the nation — are a big boon to his big family.

"It helps because now I can have them all on the health insurance," Feldpausch said of his wife and four kids. "It's a little better pay, which makes everything a little easier."

Greater Lansing reaps rewards as the seat of state government, local officials said, but as the capital of one of the poorest and least-employed states in the nation, the area lags behind other statehouse metropolises in the U.S.

Compared to its 49 fellow capitals, the Lansing metropolitan statistical area had one of the lowest median household incomes in 2012, the most recent year for which complete data were available, and among the highest unemployment and poverty rates that year, according to a State Journal analysis of Census and other data.

Though the Lansing area's unemployment rate improved greatly between 2012 and July 2014, it still remained among the lowest among the nation's capitals.

Compared to fellow Great Lakes capitals in Illinois, Indiana, Ohio and Wisconsin, the Lansing area ranks dead last on those measures.

That's because all the activity surrounding the Capitol isn't enough to counter the economic headwinds that dragged on Michigan as a whole, said Charles Ballard, an economist with Michigan State University. Namely, that means the decline in manufacturing.

"The sector that was the bulwark of our economy back 30, 40, 50 years ago has declined very substantially," Ballard said, "and it's been a very tough transition for Michigan and for the Lansing region."

Statistically, Lansing could be a contender among capitals.

While income, poverty and unemployment pulls Lansing down, on other factors such as population, education, crime, ethnic diversity, and economic output, Lansing is decidedly middle-of-the-road among the nation's capitals. It's not high-performing, but not down-and-out, either.

With a median age of about 34, Lansing is one of the youngest capitals in the country.

"We have a great opportunity, I think, but it really takes jobs," said Karl Dorshimer, director of economic development for the Lansing Economic Area Partnership. "It takes a strong economy and once you get it going, it continues to grow and it continues to hire, and I think we're right on the threshold of that."

'A pillar of our economy'

Housing a statehouse doesn't necessarily equal wealth.

It's true that the wealthiest capital region — Juneau, Alaska — also reported the highest share of its workforce in public administration, a category that includes state workers.

But Tallahassee, Fla. is the nation's poorest capital, and it had the seventh-highest share of its workforce in that category.

Rather, capitals are subject to statewide economic trends like any other city, Ballard said. In Lansing, that meant the loss of General Motors Co. jobs.

The Lansing area lost more than 7,000 manufacturing jobs between 2000 and 2012, Census data show, more than any other industry.

Michigan lost about 323,000 manufacturing jobs in that time.

But Ballard said that hit was softened by the thousands of state government jobs here.

The Lansing area lost public administration jobs, too, though the losses were not as steep as in manufacturing

"It's a pillar of our economy," Ballard said.

"Without the state capital and all the offices and organizations associated with it, the Lansing-area economy would be greatly diminished."

Add in Michigan State University — education and healthcare jobs made up more than a quarter of the local workforce, and nearly 2,300 such jobs were added between 2000 and 2012 — and Lansing ranks well against Michigan metro areas.

All the unions, lobbyists, and trade groups who come to be near the statehouse bring lots of outside money to spend on local hotels, meeting spaces, restaurants and more, said Jack Schripsema, president of the Greater Lansing Convention & Visitors Bureau.

He said statewide associations made up about 60 percent of the groups with whom CVB worked with last year.

"That's our bread and butter," he said.

The Lansing area gained the most jobs in the arts, entertainment, and hospitality sector that supports tourism.

More than 3,000 jobs were added there between 2000 and 2012, the Census data show. But those jobs typically are lower-paying.

'Highly educated people'

Among the Great Lakes states, Madison, Wis. is the wealthiest capital, with an unemployment rate nearly half that of Lansing's — both in 2012 and in July — and a median household income nearly $11,000 higher.

Statistically, the biggest difference between Lansing and Madison is education.

About 32 percent of Lansing's 25-and-older population have at least a bachelor's degree, ranking 22nd among all U.S. capitals. Meanwhile, 42 percent in Madison have a bachelor's, making it the second-most educated capital in the U.S.

If Lansing wants to see Madison's wealth, it should "do things that draw in energetic and highly educated people," Ballard said, because higher skilled equals better paid.

"In the last couple years there's been a strong recognition of that," said Dorshimer.

Greater partnership

He said local economic developers have encouraged more partnership between employers and educators such as MSU and Lansing Community College.

They've put a premium on trying to encourage grads from those institutions to stay in the area and making sure university employees want to live in the Lansing area.

Tim Daman, president and CEO of the Lansing Regional Chamber of Commerce, said the financial, health care and advanced manufacturing sectors, plus a burgeoning technology sector, are becoming increasingly important locally, and officials should "continue to diversify this economy" beyond state government.

The Capitol is important, Daman said, "but it can't be the only driver of our economic development efforts."

Ballard said he's also seen improvements in the local parks, arts and nightlife that attract young professionals.

How Lansing stacks up

Among the 50 U.S. state capitals, Lansing was one of the poorest and least-employed in 2012, the most recent year for which data were available. Unless otherwise noted, ranking is among all 50 state capitals. Compare all the capital cities with this database.

Lansing metro Lansing metro rank Michigan rank Population 464,458 28th 8th Share of state population 4.7% 38th N/A Gross domestic product $19.4 billion 29th (out of 43) 13th (out of 50) Share of GDP from government 22.8% 12th (out of 43) 32nd (out of 50) Share of state's GDP 4.6% 36th (out of 43) N/A Median household income $50,185 39th 32nd Poverty rate 17% 46th 36th Unemployment, 2012 9.7% 42nd 50th Unemployment, July 2014 7.6% 39 (out of 43) NA 25 and older with at least a bachelor's 31.7% 23rd 35th Share of workforce in public administration 8.6% 22nd 46th Share of population non-white 17.9% 27th 25th Share of population Hispanic 6.1% 24th 37th Share of population foreign-born 6.4% 27th 28th Median age 34.4 7th (youngest) 38th Violent crime per 100,000 residents 355.8 22nd (out of 37) 39th (out of 50) Murder per 100,000 residents 3.4 19th (out of 39) 47th (out of 50) Rape per 100,000 residents 46.2 34th (out of 38) 48th (out of 50)

Source: U.S. Census, Bureau of Labor Statistics, FBI data

A capital economy, by the numbers

18,756

Number of public administration workers in the Lansing area in 2012, a category that includes state workers. That number is down 2,728 from 2000, according to the U.S. Census Bureau. By comparison, the area lost 7,018 manufacturing jobs during that same period.

$4.4 billion

Amount of gross domestic product in the Lansing area that came from government activities, according to the U.S. Bureau of Labor Statistics.

4.7 million

Number of tourists who came

to Greater Lansing in 2012, according to an outside study conducted for the Greater Lansing Convention & Visitors Bureau. They spent a combined $470 million in the area.