An advisory committee is looking at raising the maximum monthly housing allowance for legislators from $650 to $900 - as requested by Bismarck-Mandan hotel operators - and increasing lawmakers' gas mileage reimbursement from 31 cents per mile to 37.5 cents.

The Legislative Compensation Commission meets every other year to examine lawmakers' pay and expense allowances, but any changes would have to be approved by lawmakers next year.

Out-of-town lawmakers are reimbursed up to $650 per month for housing expenses when they meet in Bismarck every other year. They also are reimbursed 31 cents per mile for one round trip home per week. The Legislative Compensation Commission is considering raising the housing allowance cap to $900 and the mileage reimbursement to 35 or 37.5 cents.

Bill Shalhoob, part owner of Bismarck's Select Inn, appeared before the commission to represent a group of Bismarck-Mandan hotel operators who would like to see the housing allowance increased. Shalhoob said the allowance was capped at $600 in 1985 and bumped up to $650 in 1997.

"That represents a $50 adjustment over 20 years," he said. "While the rate was appropriate in 1985, normal inflationary factors and the cost of doing business have far surpassed the increase and many of us find ourselves in the position of no longer being able to honor this rate."

The $650 limit equates to $21.67 per day, but Shalhoob said the average daily rate for all Bismarck-Mandan hotels last year was $53.34.

"In simple terms, this means the average hotel room will produce $1,140 in revenue if left on the open market and $650 if rented to a legislator," he said.

State employees are reimbursed up to $45 per night when they travel, which would add up to $1,350 per month. He said if the reimbursement rate had been adjusted for 2.3 percent annual inflation, the rate would be $1,046 per month.

Shalhoob said area hotel operators met recently and decided to ask the commission to consider raising the rate to $900 - or $30 per day - so they can "at least consider taking this business." Last session some lawmakers said it has become increasingly difficult to find adequate lodging below $650 per month. Some legislators pay more out of their own pockets. Shalhoob said an informal survey of hotel operators showed they plan to charge $850 to $1,150 per month during the 2005 legislative session.

The chairman of the commission, Charles Axtman, suggested a lower cap for lawmakers who rent apartments or houses, because he said, "I don't think the state should be in the business of compensating (snowbirds)."

The gas mileage cap was increased from 25 cents to 31 cents in 2001. Axtman said he'd like to tie the reimbursement rate to the federal rate, which is now 37.5 cents. If they could do that with all of the reimbursement rates, he said, "We'd put us out of business." If the mileage rate were increased, it would also go up for state employees who drive their own vehicles - although they are encouraged to use state motor vehicles when they travel.

The commission also looked at the issue of lawmakers' pay, but does not appear interested in tinkering with those numbers.

"Unless I hear something extraordinary, I would say the compensation should stay the same," said commission member Chris Christopherson, of Fargo. "We're pretty much in line with other states."

Karen Mund, legislative administrator for the Legislative Council, said North Dakota lawmakers make an average of $11,200 per year, not including health insurance benefits (they can get on the no-premium state plan). Last year the state spent $4.4 million to hold the 2003 legislative session, plus $159,000 for a special three-day session.

The commission also broached the subject of increasing the food allowance, which is now $4 for breakfast, $6 for lunch and $10 for dinner. Shalhoob said the state hospitality association plans to ask the Legislature to increase the meal allowance.

"You can get a muffin and coffee for four bucks, and that's an English muffin, not a jumbo muffin," Shalhoob said. He said it's also difficult to get a decent meal under $10. The federal government reimburses up to $55 per day.

The commission, which is appointed by the governor, will likely meet two more times before making recommendations this fall. Their recommendations will then be proposed to lawmakers when they meet in January.

(Reach Deena Winter at 250-8251 or deena.winter@bismarcktribune.com.)