LCCC BOARD AGENDA ACTION ITEM DECEMBER 8, 2020
Action Item Reimbursable Rate for Travel by Auto
Background In July of 2016, the Local Government Travel Expense Control Act was signed into law (Public Act 099-0604). This law requires all non-home rule units of local government, including municipalities, school districts, special districts and community college districts, to regulate travel expenses at the board level. In response to this Act and within the implementation guidelines, the Board adopted Policy 510 in March 2017 establishing maximums and procedures for reimbursement of expenses for transportation, meals, and lodging. The maximum reimbursable rate for transportation by auto per policy was defined as the Board of Trustees approved rate at the time of travel. The Board of Trustees approved rate was most recently increased effective July 1, 2017 to $.45/mile.
Implication At the suggestion of a trustee at the November 10, 2020 Board meeting, the College is requesting a change in the maximum reimbursable rate for transportation by auto for College business to equal the applicable Internal Revenue Service (IRS) deductible rate in effect at the time of travel. It is desired that said change would be effective January 1, 2021. As of today, November 26, the IRS has not yet released the standard mileage rates for 2021 yet. The rates are typically updated sometime in December for the following year. The IRS standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. For the purpose of comparison, the standard mileage rate for business use in 2020 is 57.5 cents per mile, down one half of a cent from the 58-cent rate for 2019. Since January 1, 2011, this rate has spanned a minimum of 51 cents per mile to a maximum of 58 cents per mile. President’s Recommendation The President recommends that the Board adopt a reimbursable mileage rate equal to the applicable IRS deductible rate in effect at the time of travel effective January 1, 2021.