GOP lawmakers question management of AZ trust land, accuse Hobbs of 'demonizing' some industries

Republican state lawmakers are concerned about the management of Arizona trust land following an unfavorable audit of the state land department.

Trust land is public land the state uses to generate revenue for things like public education.

An audit found that the land department didn’t develop “disposition plans” for trust land between 2016 and the end of 2024 — even though it’s required by state law.

The audit found a lack of plans caused “difficulty determining highest and best use of State trust land in best interest of trust beneficiaries,” per a slideshow presentation made to a legislative panel on Monday.

The land department is also overdue for a sunset review, which determines whether the agency will continue to exist.

Rep. Matt Gress (R-Phoenix) grilled state land Commissioner Robyn Sahid about whether land is being used productively at all, and questioned why more land isn’t being used to develop housing in particular.

“Land is perhaps one of the most important areas, and we have nearly 300,000 acres within miles of cities and towns that are going undeveloped, unleased or whatever,” Gress said, citing a recent report by the Common Sense Institute — a nonprofit thinktank.

Sahid responded that plenty of state land is in use, even if it's not being developed. For example, a chunk of state land is used for grazing.

She also spoke to the conditions projects need to meet before developing, like zoning.

“Even though it's close to a municipality or an incorporated jurisdiction, there are other things we need to weigh. Like does it, you know, what's the infrastructure look like? Is there infrastructure there to support development? Is there water?” Sahid said.

Several leases came to an end or were canceled without a new leaseholder at the ready.

There’s also a large backlog of applications for land leases.

Another finding from the suit is that the land department did not adjust rental rates to reflect conditions of the agriculture market and auctioned for low values.

“I don't think you have any idea, madam, the level of frustration that your stakeholders and this legislative body is experiencing with the lack of progress on all the things that you've been told need to be corrected,” Finchem told Sahid.

He said he would consider not renewing the agency at all if it’s not getting much done.

“That's part of the frustration that we're hearing from constituents. They don't get an approval, they don't get a denial, they're held in limbo,” Finchem said.

The audit found that the department frequently failed to inspect land used for mineral leases and released multiple bonds without inspecting the land.

Republicans on the panel accused Democratic Gov. Katie Hobbs of intentionally limiting land use and “demonizing” particular industries, namely mining and agriculture.

“These internal delays and cancellations are not oversights,” Rep. Michele Peña (R-Yuma) said in a statement. “They come from a governor who believes Arizona’s legacy industries are a problem to be eliminated, rather than an economic opportunity to be utilized, simply because her radical environmental allies oppose them.”

A spokesperson for Hobbs did not immediately respond to a request for comment.