Page 1 of 2 LRC 2024-BR1804-HB834
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2024 REGULAR SESSION
MEASURE
2024 BR NUMBER 1804 HOUSE BILL NUMBER 834
TITLE AN ACT relating to travel reimbursement.
SPONSOR Representative Kim Banta
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Legislative Research Commission Finance and
Administration, Judicial Branch
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Various
FISCAL
ESTIMATES
2023-2024 2024-2025 2025-2026 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES
EXPENDITURES Indeterminable Indeterminable Indeterminable
NET EFFECT (Indeterminable) (Indeterminable) (Indeterminable)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: This measure amends various statutes to update the mileage
reimbursement rate for state employees to the business standard mileage rate established and
revised annually by the Internal Revenue Service (IRS).
FISCAL EXPLANATION : This measure will cause expenditures to indeterminably increase. It
is difficult to estimate how many miles will be driven by state employees in personal vehicles
that will qualify for reimbursement.
Currently, the Finance and Administration Cabinet sets the state employee mileage
reimbursement rate quarterly and bases the rate on the American Automobile Association Daily
Fuel Gauge Report for Kentucky. The rate, beginning on January 1, is 43 cents. By moving to
the business standard mileage rate, which is 67 cents for 2024, reimbursement will be raised by
24 cents.
Cabinets with state employees who travel for work, such as social workers or investigators, will
experience a greater increase in expenditures than cabinets whose employees do not travel as
often. Page 2 of 2 LRC 2024-BR1804-HB834
The chart below shows the state’s employee mileage and reimbursement costs over six years.
FY 19 FY 20 FY 21 FY 22 FY 23 FY 24
(July 2023-
Feb. 2024)
Miles 95,683,426 39,505,931 8,912,863 17,703,958 24,371,067 18,365,583
Cost $40,077,948 $16,199,121 $3,563,185 $7,934,223 $11,531,148 $8,371,573
Average
Reimbursement
Rate
$0.42 $0.41 $0.40 $0.45 $0.47 $0.46
DATA SOURCE(S): LRC Staff, Finance and Administration Cabinet, Internal Revenue Service
(IRS)
PREPARER: Mariah K Derringer-Lackey NOTE NUMBER: 142 REVIEW: JB DATE: 3/11/2024