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SB 661 moves to appropriations after debate over how jet‑fuel tax revenue is split between airports
Summary
SB 661 would dedicate existing jet-fuel sales-tax revenues to aviation purposes and create a statewide fund to support both major gateways and small community airports. Airlines raised objections to the proposed 70/30 distribution and administrative deductions; the committee moved the bill to appropriations by recorded roll call.
Senator Hurtado introduced SB 661, the Airport Expansion and Regional Optimization Act, as a measure to dedicate jet-fuel sales-tax revenues to aviation purposes and to create a funding stream that supports California’s entire airport network. The author told the committee the bill is intended "to support the entire airport network and better prepare California for the nation's aviation strategy" and to bring state practice into compliance with FAA revenue-use requirements.
Juliette Jordan, managing director of industry affairs at the National Air Transportation Association, said the association supports SB 661 as a step toward reinvesting aviation-generated revenues back into the statewide aviation network to maintain safety and operations across general-aviation and commercial airports. "This is a necessary and constructive step toward compliance, reinvestment, and long term aviation system strength," Jordan said.
Airlines and carrier representatives objected principally to the bill’s proposed revenue distribution. Alberto Turbico of Airlines for America said some airlines and major airports ‘‘believe that all the money should stay at the airport where it's generated’’ and criticized the bill’s 70/30 split and an administrative off‑the‑top deduction. "We can't support the 70/30 split today," he said, while encouraging ongoing negotiations on a more equitable distribution. Southwest and United representatives echoed concerns and urged continued negotiations.
The author and supporters said the proposal is aimed at ensuring smaller community airports receive support for essential services, emergency response and regional connectivity. After discussion, the committee recorded a roll-call motion moving SB 661 as amended to the appropriations committee; the roll-call in the suspense portion recorded the motion passing 7–0.
What’s next: SB 661 moves to the Assembly Appropriations Committee for fiscal review and further consideration.
