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Postal Politics




by:
McDonald Hopkins LLC - Cleveland Office

 
August 26, 2014

Previously published on August 22, 2014

The future of the United States Postal Service has long been a thorny issue for lawmakers on Capitol Hill and it appears members in both chambers and on both sides of the aisle are preparing to tackle the issue again.

The Postal Service, which this summer reported a net loss of $2 billion in the second quarter of 2014, recently announced plans to cut 15,000 jobs and consolidate 82 mail-processing centers in 2015. The Postal Service has already consolidated 141 mail-processing facilities since 2012.

Last week exactly half the Senate wrote to appropriators urging them to block any more Postal Service cutbacks in legislation to fund the government after Oct. 1, which Congress must enact in September to avoid a shutdown.

The letter called for a one-year moratorium on further cuts to "give Congress the time it needs to enact the comprehensive postal reforms that are necessary for the Postal Service to function effectively in the future." The senators said the planned cuts in 2015 will affect services in 37 states and harm local communities and economies.

"While a number of reform proposals have been introduced in both the Senate and the House to tackle these problems over the past several years, we have yet to enact legislation," the letter said. "In the absence of congressional compromise, the Postal Service has proposed more sweeping changes to its operations."

The 50 senators requested that language be added to must-pass legislation to fund the government into the next fiscal year that starts Oct. 1. The language should block for one year any Postal Service plans to consolidate more mail-processing facilities, the letter said, and should impose a moratorium through fiscal 2015 on any more reductions that would result in slower first-class mail service.

Senate Homeland Security and Governmental Affairs Committee Chair Tom Carper (D-DE) and House Oversight and Government Reform Committee Chairman Darrell Issa, (R-CA) have been promoting legislation to streamline and modernize the Postal Service and deal with its health care, pension, and other costly issues. But those efforts, including a reform bill that Carper cosponsored with Sen. Tom Coburn (R-OK) have stalled.

Meanwhile, the USPS continues to drown in red ink, despite an increase in revenue in the quarter ending June 30. A big part of the losses stem from a congressional requirement to prepay billions of dollars into a future retiree health care fund.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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