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F I S C A L I M P A C T R E P O R T
SPONSOR Foley
DATE TYPED 02/11/2005 HB 847
SHORT TITLE
Revise Mileage Reimbursement Rates
SB
ANALYST Moser
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
Indeterminate
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Corrections
Retiree Healthcare Authority
Energy, Minerals and Natural Resources Department
SUMMARY
Synopsis of Bill
House Bill 847 seeks to amend the Mileage and Per Diem Act by revising the mileage reim-
bursement allowable for public officers or employees for travel in a privately owned vehicle or
airplane. The bill proposes to change the rate of reimbursement to the internal revenue service
standard mileage rate for both privately owned vehicles and privately owned airplanes.
Significant Issues
Currently NM legislation prescribes these reimbursement rates at $.32/mile and $.88/mile re-
spectively. The IRS rates for 2005 are $.405/mile and $1.07/mile respectively. These rates are
annually adjusted by the IRS with 2005 being the highest increase ($.035 cents) recorded over a
prior year.
The legislation ties New Mexico’s rate of reimbursement directly to the federal rate. This could
be problematic in anticipating expenditure levels from year to year and removes from control of
the legislature the ability to set these levels.