Last week, California Governor Gavin Newsom vetoed state legislation that would have curbed ongoing aviation revenue diversion by the state. Passed unanimously by the California State Senate and Assembly, SB 661 would have taken a positive step toward compliance with federal requirements that state and local aviation fuel taxes remain within the aviation system. NATA had endorsed the legislation and led a coalition of business and general aviation groups in urging the governor’s signature on the bill.
In his veto message, Newsom claimed the legislation “goes far beyond what federal law requires” and expressed concerns about redirecting funds from the state’s General Fund that have been used to support non-aeronautical community services. He also raised concerns about redirecting “constitutionally dedicated” funds and noted any permanent redirection should be carried out through the annual budget process.
NATA and other aviation stakeholders plan to continue efforts in the next legislative session, as noncompliance with FAA regulations puts federal support for California airports at risk. NATA is also monitoring the state’s response to a recent FAA letter requesting detailed records about California’s collection, tracking, and use of aviation fuel tax revenue.