SUBJECT: Proposed Mileage Reimbursement Rate Change
At its meeting of April 13, 1996, the Board of Regents approved increasing the mileage reimbursement rate for the use of personal vehicles for University business to $0.31 per mile effective July 1, 1996. The rate has not been increased since that time.
The University administration proposes to increase the mileage reimbursement rate for the use of an employee's personal automobile for official University business from the $0.31 per mile to the current IRS mileage rate for business use of $0.405 per mile to be effective July 1, 2005. The reimbursement rate shall be construed to cover all costs related to the use of privately owned vehicles including, but not limited to, gas, oil, tires, repairs, insurance, license fees and depreciation costs.
This increase is appropriate due to increases in automobile operation costs for fuel and insurance as well as increases in new vehicle prices since the $0.31 per mile reimbursement rate was approved in 1996.
The University has allocated $30,000 in the FY 05-06 general fund operating budget to cover the additional reimbursement expenses for University departments.
President Farley recommends approval by the Board of Regents of a mileage reimbursement rate of $0.405 to be effective July 1, 2005.
Date Jerry B. Farley, President