Sets States mileage reimbursement rate at IRS rate for business use of automobile.
The implementation of A5680 is designed to ensure that State employees are fairly compensated for their travel expenses using personal vehicles on government business. By aligning the state rate with the IRS rate, the bill seeks to protect employees from potential out-of-pocket expenses that may arise when the state rate does not keep pace with actual driving costs. This change could lead to a more equitable reimbursement process for state employees, particularly those who frequently travel for their jobs.
Assembly Bill A5680 proposes to align the mileage reimbursement rate for State officers and employees using their personal vehicles for official business with the standard mileage rate established by the federal Internal Revenue Service (IRS). Under current law, the State's reimbursement rate is set at 18 cents per mile, with adjustments made biannually to reflect gasoline price fluctuations. This bill looks to replace this fixed rate with the IRS rate, which is adjusted periodically for inflation, meaning it could vary over time based on federal guidelines.
While the bill has gained support for its intention to provide fair compensation, there may be discussions regarding the fiscal implications of adopting the IRS rate for mileage reimbursement. Critics could argue that fluctuating federal rates might lead to unpredictability in state budgeting, particularly if irregulations place higher demands on state allocations for employee reimbursements. Additionally, some may raise concerns about whether adjustments to these rates could be made swiftly enough when gas prices increase significantly, potentially placing undue financial strain on state employees in the short term.