When federal government employees come to Watertown on business, local hotels have had to turn them away or accept a drastic cut in their normal room rates.

That's because, according to the guidelines for the federal continental United States per diem rates, federal employees should pay far less to stay in Jefferson County than they pay to stay in surrounding areas.

The Jefferson County rates are so low, in fact, that they follow the $70 statewide minimum for per diem reimbursements, just over half of what hotels typically charge their other customers.

The gap between what hotels bill and what federal employees pay may narrow soon, thanks to a push by U.S. Sen. Hillary Rodham Clinton, D-N.Y.

On Monday, Mrs. Clinton issued a statement calling on the General Services Administration, which publishes a guide on the rates, to help increase the per diem reimbursement in Jefferson County.

Calling the per diem rates "out of sync," Mrs. Clinton said in a press release that the low figures had been "tying the hands of our local establishments" and were "endangering the economic vitality of the region."

Local business and tourism leaders raised the problem with Mrs. Clinton during her visit to the region Aug. 6. They told her lodging owners had been forced to accept the statewide minimum because the cities and towns in Jefferson County were not included in the GSA's annual rate directory.

On Monday, Mrs. Clinton called on the GSA to add Jefferson County to the 2008 directory of New York state per diem rates.

In a letter to GSA Administrator David L. Bibb, she wrote that, "because tourism and government business are both critical components of Jefferson County's local economy, it is important that per diem rate decisions are made based on prevailing market conditions on the ground."

"I urge the GSA to act as soon as possible to close the gap between the local commercial rates and federal rates, so that our innkeepers have the opportunity to reach their full potential during the critical summer months when demand for accommodations are at their peak," she is quoted as saying in the press release.

At Holiday Inn Express in Watertown, per diem rates have fallen so far below what the hotel normally charges that government employees routinely are turned away, General Manager Jody L. Pettit said. She said up to 30 people per day would request the rates.

"We were losing 50 to 60 dollars a night for every room we took," she said. "There's a high corporate need in this area at a much higher rate. In the summer months, there's a high tourist need at a much higher rate."

Last year, Ms. Pettit asked Rep. John M. McHugh, R-Pierrepont Manor, for help on the issue, but Mr. McHugh's inquiry to the GSA apparently went unanswered. In an unrelated, statewide move, the minimum per diem rates went up from $60 to $70 this year; Ms. Pettit said the increase did little to improve the local problem.

Ms. Pettit, who would like to see the per diem rate go up to as much as $129, is more hopeful that Mrs. Clinton's letter will have an effect.

"I think she sees first-hand the amount of government business in this region," she said. "I think she has her eyes open to what's going on."

Karen K. Delmonico, president and chief executive officer of the Greater Watertown-North Country Chamber of Commerce, said continued low rates would hurt local establishments by not giving them enough of a profit margin.

She said the existing rates had been based on an outdated model, one that doesn't factor in the size of Fort Drum or the economic realities of Watertown in 2008.

As a result, hotels either have to lose money on customers they want to keep or turn away people who might not return during the slow winter season, she said.

"For hotels trying to make it here, for them to take a loss and have to drop down to $70 is a big deal," she said. "It puts the hotel owners at a disadvantage because that business is important to them."

Like Ms. Pettit, Ms. Delmonico said she hopes Sen. Clinton's intervention would help change minds at the GSA.

"The problem is that nobody has found the avenue to request the change," she said. "It would be great if Senator Clinton can make a difference."