GSA says announcement on mileage rate imminent

The General Services Administration is under pressure to explain why a 4 cent increase in the mileage reimbursement rate has not been implemented as promised.

The National Treasury Employees Union, one of the largest federal labor unions, called on GSA this week to "end internal delays and approve an increase."

In a Nov. 20, 2006, letter to NTEU President Colleen Kelley, GSA Administrator Lurita Doan said the agency was still working to determine the 2007 reimbursement rate for federal employees driving personally owned automobiles on government business. She stated that a rule would be published in the Federal Register "no later than Jan. 1, 2007."

GSA officials are "keenly aware of the need to continuously evaluate the mileage reimbursement rate" with the "fluctuating gasoline market," a spokeswoman said in a statement.

"The completion of the interagency process is imminent, and the administrator looks forward to announcing the new regulations immediately thereafter," the spokeswoman said.

GSA has the responsibility under federal law to establish a reimbursement rate for federal employees who use personal vehicles for official business.

GSA's rates generally match those established by the Internal Revenue Service annually for calculating the deductible costs of operating an automobile for business purposes. By law (41 CRF part 301-10) they cannot be higher than the IRS rates.

In November 2006, the IRS announced that beginning Jan. 1, the standard rate would be increased to 48.5 cents per mile, matching the top rate set in the fall of 2005.

Delays in announcing the updated mileage reimbursement rate for federal employees are not uncommon.

In 2005, GSA waited until early February, and in 2002, the decision did not come until Jan. 15.

But in 2006 and 2003, GSA announced the changes on Jan. 6. The announcement was also more prompt in 2000, coming on Jan. 7.