The Joint Legislative Audit Committee convened in Phoenix to scrutinize the State Land Department’s management of Arizona’s trust lands. The focus was on Governor Katie Hobbs’ land-use policies and their impact on housing supply and K–12 education funding. This special hearing followed a Performance Audit and Sunset Review that raised concerns about invoicing issues, returned checks, application backlogs, and non-compliance with statutory requirements for comprehensive planning. The audit report included 51 recommendations, leading lawmakers to request further information from the department.
Representative Matt Gress, Co-Chair of the committee, criticized the current administration’s approach: “Arizona’s trust lands exist for one purpose: to generate revenue for our public schools,” he said. Gress argued that Governor Hobbs’ policies prevent these lands from being used economically, which reduces available land for housing construction and funds for education.
Representative Michele Peña expressed concerns about the sidelining of traditional industries like farming and ranching. She noted that these sectors have historically supported the Trust through rent and royalties. “Mining and agriculture have helped fund our schools for more than a century,” Peña said. She accused the administration of allowing valuable land to remain idle due to opposition from environmental groups.
Evidence presented at the hearing highlighted several issues: canceled agricultural leases without replacements, stalled mineral lease applications, and withheld public auctions for developable land near urban areas—enough to support over 200,000 housing units.
Representative Neal Carter pointed out similarities between these land-use policies and water policies under Hobbs’ administration. He claimed both sets of policies impose growth boundaries around Phoenix, affecting housing costs and job growth while impacting real GDP. “Her administration keeps putting far-left priorities ahead of Arizona’s students and families,” Carter remarked.
Matt Gress is a Republican member of the Arizona House of Representatives serving Legislative District 4 in Phoenix since 2023. He chairs the House Committee on Education.
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