Mileage rate hiked

Topeka Capital-Journal, The, Jun 25, 2008

It's a sign of the times, and not a particularly cheery one.

Earlier this month, the Shawnee County Commission approved an increase in the mileage reimbursement for county employees who use their private vehicles on the job.

The commission bumped the per-mile rate from 47 cents to 51 cents, bringing it in line with what was then the Internal Revenue Service's standard mileage rate of 50.5 cents.

Obviously, 4 cents isn't exactly the end of the world.

But for county taxpayers, it will mean an extra $10,000 to $12,000 in the annual amount paid to county employees.

So once again, fuel prices sapped a little more money out of local residents' wallets.

It certainly doesn't take a trip to the pump anymore to feel the sting of those high prices. They're hitting home everywhere, adding to the prices of goods and services and to the cost of doing business - including the business of the county government.

And there doesn't seem to be any relief in sight.

In fact, just a few days after the county approved the increase, the IRS announced it was bumping its standard rate yet again.

In a rare midyear adjustment, the IRS increased the rate by 8 cents per mile to 58.5 cents, an increase of 18.8 percent.

On one hand, that's good for people who use their vehicles to do business. Many governmental agencies and private employers base their reimbursement rates on the IRS standard.

No doubt, there's a reason for the rising rate. According to a recent AAA report, the average gas price nationwide has skyrocketed from $2.98 a gallon a year ago to $4.07.

So obviously, private employers and governmental organizations must be sensitive to the needs of those who must use their own vehicles to do their jobs.

But governmental bodies also must balance those needs with the increased costs passed along to taxpayers.

That's not to pick on Shawnee County. It's hardly the only government that has followed the IRS up the scale in mileage reimbursement. In fact, the federal government rate also is tied to the IRS figure.

But it's worth noting that not every private business reimburses its employees at the IRS mileage rate. If businesses find they're pricing themselves out of the market because of high mileage reimbursement or fuel prices, they can't turn to taxpayers - they have to find ways to cut back or otherwise offset the higher costs.

That's something government leaders would do well to remember at a time when rising gas prices are just one of many signs that the economy is sputtering.