Discussion
Veto message dated September 30, 2026 from California Governor Gavin Newsom returning Senate Bill 661 (SB 661). SB 661 would have redirected state sales and use tax revenue attributable to jet fuel from the General Fund, Local Public Safety Fund, and Local Revenue Fund to the Aeronautics Account and established a new formula for distributing funds to airports and aviation-related programs as an alternative mechanism for complying with the FAA's Airport Revenue Use Policy.Notes
Veto message dated September 30, 2026 from California Governor Gavin Newsom returning Senate Bill 661 (SB 661). SB 661 would have redirected state sales and use tax revenue attributable to jet fuel from the General Fund, Local Public Safety Fund, and Local Revenue Fund to the Aeronautics Account and established a new formula for distributing funds to airports and aviation-related programs as an alternative mechanism for complying with the FAA’s Airport Revenue Use Policy.
Had this bill passed into law it would have set a precedent for WA, which also depends heavily on aviation fuel taxes for off-airport purposes.
Newsom cites California’s existing offsetting-expenditure methodology (approximately $2.3 billion in state expenditures supporting airports and aviation from 2020–21 through 2025–26, versus $226 million in covered revenue), fiscal concerns about redirecting tens of millions annually from critical realignment funds supporting local public safety, health, mental health, and social services, and constitutional concerns under Proposition 172 regarding the Local Public Safety Fund.