Arizona Republicans in both the House and Senate are moving to address long-standing problems at the Arizona State Land Department after years of concerns about how the agency operates.
Last Thursday, the House Natural Resources, Energy, and Water Committee held a special meeting where lawmakers advanced 16 reform bills aimed at overhauling department operations. The primary goal is to ensure better management of Arizona’s 9.2 million acres of state trust land to maximize revenue for public schools and other beneficiaries.
The department has struggled for years with operational inefficiencies. Audits and legislative hearings have highlighted significant issues, including delays in processing applications, a lack of clear policies and procedures, and inconsistent long-term planning.
Inefficient land sales and leases reduce revenues that support education and limit the availability of land for housing development. At a time when Arizona faces an urgent housing shortage, the department has delayed auctions and canceled leases without finding new tenants, actions that have worsened the crisis and withheld much-needed funds from classrooms.
Committee's Urgency
Committee Chair Gail Griffin (R-AZ) underscored the urgency of reform, noting that “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.”
She then emphasized that improving land management could expand housing opportunities and generate additional education funding, all without increasing taxes.
During Thursday’s hearing, lawmakers pressed the Governor’s Land Commissioner for basic operational information. In several instances, the commissioner was unable to answer fundamental questions or clarify references from a 2024 audit.
Senate Vice Chairman Tim Dunn (R-AZ) acknowledged that “the current administration didn’t create these problems, but it certainly inherited them.”
If successful, the changes could generate millions in new revenue for Arizona’s schools.
Under the legislation, the department will continue operating for four more years. Lawmakers made clear, however, that its continuation will depend on measurable improvements, not unfulfilled promises.
