The General Services Administration (GSA) sent mixed signals last
week about its recognition of price inflation popping up around the
country. While they announced standard per diem rates of $70 for
lodging and $39 for meals and incidentals would remain the same for
fiscal year 2009, federal employees traveling to some 400 locations in
the continental United States will receive higher, nonstandard per diem
rates.
Starting October 1, 2008, federal employees traveling to
Washington, DC will incur a lodging per diem of $165 to $233, depending
on the season, and $64 for meals and incidentals. While the meal and
incidental rate stayed the same, the lodging rate increased by 9-15
percent over the previous year.
Rates for other major cities,
including but not limited to, Boston, Chicago, Denver, New York, Los
Angeles, and San Francisco, also went up.
Naturally, the highest
nonstandard per diem in 2009 will be for travel to New York City. Big
Apple visitors can expect to be reimbursed a small fortune $323 to $424
for a clean bed, table lamp, and terrible in-room coffee.
For
non-skiers, the second most expensive place to sleep on Uncle Sam's
dollar might surprise you. It's Vail, Colorado at a steep $332 a night.
GSA's
methodology for determining the per diem rates each year isn't based
upon generosity or their favorite vacation spots. They benchmark
everything with current pricing (of government rates of course).
Lodging
per diem rates are based on the average daily rate (ADR) of mid-range
hotels in a given zip code. The ADR is a widely accepted
lodging-industry measure based upon a property's room rental revenue
divided by the number of rooms rented. The GSA adds into the mix
additional factors, including seasonality, fire safe certification, and
something called "methodological rate adjusters" - floor and ceiling
caps on rates.
Most federal employees care little how the per
diem rate is determined, but will be glad to hear that for many
locations at least, it is keeping pace with rising costs. Now if that
government rate was just available for vacations...
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