Monday, November 24, 2025

Report Finds Arizona Wasted Economic Opportunities Of State Trust Lands

I have noticed for many years that in the US too much land is reserved for state governments and the federal government.

Arizona is perhaps a particular example! Why so much land is dedicated to K-12 educations is strange! Or why are Arizonans paying so much state income tax?

"... Today, 9 million acres, 13% of the state’s landmass, are owned by the State Land Trust. In practice, most of this land is largely idle and undeveloped, even though CSI estimates that more than a third of it is proximate to urban areas and potentially developable. ..."

"A new report from the Common Sense Institute (CSI) Arizona examines the state’s management of its state trust lands, set aside in 1912. It makes the case that the lands represent a “$140 Billion Missed Opportunity.” CSI Arizona argues that the beneficiaries of the trust, primarily K-12 education, could benefit from developing the land, while potentially addressing Arizona’s growing demand for developable space. ...

Arizona received about 10.96 million acres under The Arizona-New Mexico Enabling Act of 1910, with roughly 8 million acres dedicated to K-12 education—one of the largest such grants in the nation. As of 2024, the state retains approximately 84% of its original grant, compared to an average of 36% across other land-grant states. More than 80% of the remaining trust land is used for low-intensity purposes such as grazing or rights-of-way, generating an average annual return of $8.40 per acre for K-12 beneficiaries.

The report estimates that historical delays in selling and developing trust lands have cost beneficiaries approximately $134 billion in lost distributions over the past century. Had lands been sold early (1913–1923) and proceeds invested at market rates, the K-12 Permanent Land Endowment Trust Fund (PLETF) could be worth $163 billion today, compared to its current combined value (distributions plus assets) of approximately $19 billion. ..."

Report Finds Arizona Wasted Economic Opportunities Of State Trust Lands - AZ FREE NEWS

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