Inside Iowa State

June 15, 2005

New mileage, meal reimbursement rates likely on Sept. 1

by Anne Krapfl

Iowa State employees who must use their personal vehicles for work-related travel would be reimbursed at a higher rate under a proposal reviewed June 13 by the Board of Regents, State of Iowa. The board is expected to approve the new rate at its Aug. 3-4 meeting, with the rate taking effect Sept. 1.

The proposal ties Iowa State's mileage reimbursement rate to the rate set by the federal government (currently 40.5 cents/mile). Iowa State's mileage reimbursement rate, in effect since November 1997, is 31 cents/mile -- the federal rate at that time.

The reimbursement rate for employees who have access to a university fleet vehicle and opt to use a personal vehicle for travel would go from 25 cents/mile to the federal rate of 28.5 cents/mile.

The estimated cost to the university of the new rates in FY06 is $327,087. Approximately a third of that would be used to reimburse ISU Extension employees around the state who use personal vehicles on a daily basis.

Meal reimbursement

A second part to the proposal also would raise the maximum reimbursement rate for meals, during work-related travel in Iowa, from $26 to $31 per day. The proposed rates are a dollar higher for breakfast (to $6) and $2 higher for lunch and dinner (to $9 and $16, respectively.) The current rates have been in place since 1991. Reimbursement rates for meals outside of Iowa aren't being changed at this time.

The new meal reimbursement rates would cost the university an additional $64,237 next year.

The changes would be made to chapter 7 (Business Procedures) of the Board of Regents Policy Manual.

The regents will consider raising the reimbursement rate from 25 cents/mile to 28.5 cents/mile for employees who must use their personal vehicles for work-related travel.