Mileage reimbursement to drop in April

Mileage reimbursement to drop in April

Federal employees who choose to use their own cars when traveling on government business will be reimbursed 1.5 cents less per mile beginning in April.

Feds will receive 31 cents per mile instead of the 32.5 cents per mile they currently receive, General Services Administration Travel and Transportation Management Division Director Bill Rivers said.

GSA's new rates will match the national per-mile driving rate set this month by the IRS. The new IRS rate will not go into effect until April 1, because the IRS wants to give employers time to implement the new rate.

Runzheimer International, a Wisconsin-based management consulting firm specializing in travel costs, set the standard for the IRS. By law, GSA's per mile reimbursement rate cannot exceed the IRS' rate.

"Lower gasoline prices are one of the principle reasons for the drop," according to Larry Snyder, director of government development at Runzheimer. "Also, 1999 model vehicle prices have remained quite stable or even dropped in some cases, causing projected depreciation costs to moderate."

GSA increased the per mile reimbursement to 32.5 cents in October 1998.