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State Land Office posts record non-oil-and-gas revenue, proposes compromise staffing increase
Summary
The State Land Office reported record non-oil-and-gas revenue and historic total receipts; Commissioner Stephanie Garcia Richard proposed a compromise budget that accepts the LFC recommendation plus a modest add-on to fund mission-critical staff and cybersecurity compliance work.
The House Appropriations & Finance Committee heard the State Land Office's FY26 presentation and a proposal to add limited staff to manage increased workload stemming from record revenues and expanding program activity.
Nut graf: Commissioner Stephanie Garcia Richard said the office posted its highest-ever non-oil-and-gas revenue (about $214 million) and a strong overall revenue year. She proposed a compromise to the LFC recommendation: accept the LFC baseline but add $661,000 to restore some staffing capacity and meet cybersecurity and classification needs after years of growth in transactions and lease activity.
Why the compromise: The State Land Office originally asked for a larger package to cover reclassification and compensation adjustments and three new FTEs to address cyber compliance and historic workload (royalty audits, inspections, approvals). LFC recommended a smaller package focused on personnel; DFA and the executive recommended somewhat different mixes. The commissioner proposed narrowing her original request and identifying specific hires and one-time investments tied to procurement and system upgrades that delayed spending in FY24.
Key facts: The commissioner said the office now manages more than $2.56 billion in revenues (including oil, gas and non-oil receipts) and that non-oil-and-gas revenue rose to $214 million. She described specific needs: an HR manager, cash-management auditors, procurement and legal procurement support, and an IT director role to meet DoIT cybersecurity standards. The proposed compromise keeps contractual and other operating budgets flat while adding targeted salary funding and reducing originally requested bar language.
Committee response: Members praised the office's revenue performance and asked about renewable and transmission issues, geothermal rule updates and opportunities for recycling produced water. The committee approved the LFC recommendation and the commissioner announced a narrower request she would pursue during follow-up or in working-group discussions.
Ending: The commissioner said the office aims to align its classifications and compensation with peer agencies and to invest in staff and systems to manage growing trust responsibilities.
