CHERRY POINT, N.C. - A rumor that Fleet Readiness Center East is trying to abolish van pools by disincentivizing riders is just that, a rumor.

“The command fully endorses, and is proud of its Transportation Incentive Program participation and its van pool structure,” said Comptroller Joseph Kasperski. “In fact, we represent approximately eight percent of the total TIP participants in the Department of the Navy. TIP is a win-win for everybody, the command, the community, the employees, and the environment. However, as a financial steward of federal funds and tax dollars, we have to ensure the costs for the commuting benefit are reasonable.”

A recent change in the way the command reimburses employees for commuting costs has caused concern for some participants. Kasperski explained employees have been eligible to receive vouchers for commuting expenses in approved van pools since 2000 when the program was established by executive order. In March 2008, as part of the government's incentive package, the maximum benefit was increased from $120 per month up to $230 month. “Within four months of the increase, the command witnessed all but one van operator had increased their fares to $230 per month regardless of the distance traveled,” Kasperski said. “This quickly escalated the command's costs (FRC East funds the program) from approx. $800,000 to more than $2.4 million a year. That’s when we decided it was time to review the program.”

Based on that review, the command determined there was a wide spread misconception among van pool operators that the government had to reimburse employees whatever employees were charged for transportation costs. “That is simply not true,” said Kasperski, who confirmed that understanding with the Department of Navy and cites the Department of Defense instruction that states it is the responsibility of field commands to ensure reasonableness of commuter costs. “So when you review fare charges and find van operators who were charging riders who traveled as little as 14 miles round trip a day, $230 a month – which is just over $10.00 per mile the van is receiving and you compare that to local cab companies that typically charge $1.30 to $1.50 per mile – what conclusion do you reach?” He added that this is the same fare people were being charged who traveled from Down East, little Washington, Greenville, and Jacksonville.

Explaining the background associated with the change, Kasperski said, “First, we invited all the van pool owners to a conference and shared with them our observations and then informed them the command would determine an alternate methodology if their fare structure remained unchanged.”

A six month follow-up review was conducted and found no change in the fare structure. A comparative benchmarking study was performed with in-state and out-of-state van pool fare structures which resulted in the current fare structure that is dependent upon mileage and van capacity along with fixed and variable costs considerations – a fare structure very similar to industry standards. Simply put, the methodology is a scale that determines fare reasonableness based on commuting distance. Kasperski said the formula calculates the benefit based on van occupancy and distanced traveled. Although the maximum benefit returns to $230 a month in April, Kasperski said the majority of the van pool participants will not see a change in their vouchers.

Other problems encountered in the TIP include fraudulent ridership and kickback from van pool operators.

“The voucher method used in the TIP program is very similar to a cash transaction and very susceptible to abuses,” Kasperski said. “We are trying to ensure the program is not being abused for personal or private gain, and we will take disciplinary action against employees who have been found to falsify the documents which vouchers are based upon or individuals who receive 'kickbacks or profit shares' from van pool owners.”

Kasperski has been approached by a handful of employees who are unhappy with the revisions to the program. A limited number of employees believe they are being denied an entitlement, and think whatever they pay is the amount they should be reimbursed similar to many of the van pool owners. “This (TIP) is a benefit, not an entitlement,” Kasperski explained. “It is a way for the government to incentivize riding in van pools, which not only directly benefits participating employees, but benefits everyone by reducing our carbon footprint, decreasing gate congestion and parking. However, the key words are UP TO $230 per month.

“Periodic reviews will be performed and we'll make adjustments and revisions as needed. No one should view this as an attempt by the command to disestablish the TIP program,” Kasperski explained. “The command fully endorses the Transportation Incentive Program and will continue to support those employees who participate in the program which is goodness for all – the employee, the command, and the community. Everyone wins when individuals participate in TIP.”