Arizona lawmakers are focusing on longstanding issues within the Arizona State Land Department, an agency tasked with managing 9.2 million acres of state trust land to generate revenue for beneficiaries such as K–12 schools.
Recent audits and legislative hearings have highlighted persistent problems in the Department, including a lack of long-term planning, delays in processing applications, and the absence of formal written procedures. These issues have resulted in lost revenue, alleged due process violations, and further pressure on Arizona’s housing supply at a time when land scarcity is already impacting costs.
Lawmakers say that better management of the Department could improve both housing affordability and education funding by making more land available for sale or lease. However, recent reports indicate that the Department has withheld land from public auction and canceled leases without securing new tenants. Some legislators also claim that the current administration is devaluing urban lands to prioritize utility-scale solar development near residential areas.
The sunset review process gives legislators an opportunity to demand improvements. During a recent special hearing, members questioned the Governor’s Land Commissioner about basic operations; according to attendees, many questions went unanswered, including those about documents cited as “privileged” during a 2024 audit.
House Natural Resources, Energy and Water Committee Chairman Gail Griffin stated: “The State Land Department is not a constitutional agency. The Legislature created the Department, and the Legislature can set guardrails to ensure the highest and best use of land. For years, the Department has failed to keep land and housing development moving with consistent long-term disposition planning and predictable decisions. That means less trust revenue for classrooms and fewer lots available for homes. This is not complicated. Arizona’s high-tech economy requires new affordable rooftops for workers, and Arizona’s schools depend on trust returns from the sale of available trust parcels. The Department can improve housing supply and education funding today by selling more land and ending the internal practices that keep projects stalled.”
Senate Natural Resources Committee Vice Chairman Tim Dunn added: “The current administration didn’t create these problems, but it certainly inherited them. Now the burden is on the current commissioner to change the culture and redirect the agency in the right direction. The agency needs oversight, but the Department has an opportunity to make a meaningful difference for the state. A positive change could bring in millions of dollars of additional revenue for the trust. Arizona House and Senate Republicans are unified in our understanding of the issues and of the breadth of changes that are needed. Based on the clear recommendation of the Joint Committee of Reference, I think it’s safe to say that the Department will not be receiving a clean continuation, and that any continuation the Department receives will be contingent on significant improvements codified in law.”
Legislation known as HB 2150 would extend operation of the State Land Department for four years while requiring biennial hearings, quarterly updates, and adherence to a five-year disposition plan.
Gail Griffin represents Legislative District 19 as a Republican member of Arizona’s House; she also chairs its Natural Resources committee.
Carbone was elected as a Republican representative for Arizona’s 25th House District in 2023 after replacing Michelle Udall.
