Moving Expense Reimbursements/Allowances Update

Thursday, October 18, 2018

The Office of State Budget and Management (OSBM) changed its policy on moving expenses earlier this year. This change impacts the moving procedures put in place in March.

What’s new

  • ​State funds can be used to reimburse new employees for their moving expenses incurred in certain circumstances. There are many requirements associated with using state funds, including pre-approval by the department head or designee, and approval of the reimbursement by the Chancellor, which cannot be delegated.
  • Previously, only discretionary funds could be used to pay for new employee moving expenses. (Note that “state funds” generally encompass all departmental fund sources except discretionary funds.)

What this means

  • Starting Jan. 1, 2019, departments will be able to use either state funds to reimburse new employees for moving expenses or discretionary funds to provide a moving allowance for new employees. The breadth of requirements to use state funds will cause the reimbursement process to be more cumbersome and to take more time than the allowance process.
  • We are working with the ITS Imaging Team to develop e-forms that can accommodate the required approval and payment processes.
  • New procedures will also be developed and published. We plan to communicate these new procedures before the end of the calendar year.
  • In the meantime, please continue to use the current Moving Allowance Procedures and Moving Allowance Form.
  • Note that all moving expense reimbursements/allowances will continue to be taxable to employees, per IRS law.

 Any updates and further details will be sent closer to the anticipated go-live date.