USPS Statement on Issa “reform” bill

We thank House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA) for introducing the Postal Reform Act of 2011 and look forward to working with him as the bill makes its way through the legislative process.

While there are several provisions in the bill that we agree with, the bill appears to be based on the assumption that the Postal Service’s challenges result from too little regulation. The opposite is true. Our financial instability is the result of dramatic loss in volumes, coupled with restrictions imposed by Congress that have prevented the Postal Service from adequately responding to those losses in a business-like fashion.

We strongly oppose a provision in the bill that provides for an additional $10 billion in borrowing authority from the U.S. Treasury. The Postal Service does not need to incur additional debt — we need the money back that is already owed to us. We also strongly oppose sections of the bill that would create more government bureaucracy and slow our progress on streamlining our operations.

Also, we are disappointed that Rep. Issa’s bill does not address core issues that Congress needs to address to enable the Postal Service to return to financial stability, including the need to:

  • Eliminate the current mandates requiring retiree health benefit pre-payments, which costs the Postal Service $5.5 billion annually.
  • Allow the Postal Service to access Civil Service Retirement System and Federal Employees Retirement System (FERS) overpayments. The FERS overpayment is estimated to be $6.9 billion.

We are pleased that the bill recognizes the need for a change in delivery frequency. The bill’s provision to move to five-day delivery would save the Postal Service $3.1 billion annually.

The need for legislative change is urgent. Despite significant and ongoing cost cutting actions and progress on new revenue generation, the Postal Service is in danger of running out of cash as early as this October.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

  • Danny

    I smell a rat!!

  • Guy Nohrenberg

    Hmmmm… :[

  • D.Eficate

    Issa’s another republican moron, only interested in advancing his agenda, with his business associates…

  • Mp

    I have been telling everyone in the office. The government took over GM; what makes you think they won’t take us over. They probably won’t cut or pay, but making us pay more to our retirement and to our medical is a pay cut in itself.

  • Postal Clerk

    The attention to the matter is a step in the right direction.

  • xcarrier

    It will never pass the Senate!

  • CAWorker

    Issa’s only cares about his republican agenda and makes up lies to support it. I’m not sure why Postal Workers have not shown up his offices in San Diego or Washington and call him out for his attacks on working postal families.

  • waleye

    Their all weiners and liars

  • independent

    what do you expect from republicans………………..they’re voted in to offices by business and well to do individuals ………..so they can hurt the middle class …….. and democrats screw it up to but not as bad

  • BonaFied

    Any congressman from CA, with financial advice,
    should be lined up against the wall.

  • Charlie

    Issa is an idiot who has no clue. He proposed to increase the USPS borrwing authority, as if the USPS needs MORE debt, eleeliminate Saturday delivery, Doesn’t address the retiree mandate, and if we are not careful, we could end up like our brothers and sisters public workers and other states that are fighting hard to keep their collectives bargaining rights as they are and keep what they have!

  • Butch

    They are all phonies!

  • Fed up with the FED

    http://www.newsmax.com/US/Rep-Issa-Moves-to/2011/06/24/id/401331

    The Republican’s agenda looks like they want to form another government commitee to TAKE over all areas of the USPS. They want to literally take over all areas including employee salaries (Collective bargaining) and OWCP (Injured USPS employees). This looks like their plan all along. Another way these Republican congressmen and Senators can strip Americans of their Union rights as well as their wages! Why did the USPS go ask them for help. All that really needed to be done was to eliminate the pre-pay for Retirement benefits. The USPS had to go before this reform commitee and ask for so much more and cry that they are doomed! Now they are going to be run by a commitee that does not favor any of the accomplishments of both the workers and the USPS. The efforts already underway within the USPS are now going to be tossed in the trash and all is going to be wiped away to form something that is unimaginable!

  • gary

    There is to much money being made in the Postal System that is not going into private pockets thats what it all boils down too. They are not offering shares to employees. They just want to rip the employees, the public and anyone who is not in the circle of friends. Privitize is just rich people trying to get richer

  • RobertT

    First let’s close all of Issa’s POs in his district and let his constiuents see what they elected. Take away his “FREE” mailing as a Congressman. I don’t know how many people remember in the 80’s where Congress personnel used USPS as a Bank? They are not satisfied until they have a pawn and it’s just like Issa’s since he’s so rich he can just use FedEX and UPS but if PO’s are closed who is going to deliver the mail that these two companies won’t deliver too? He is BIG Business and we can’t have it running this country so vote and complain to your elected officials!!!

  • Someone

    If I read him right we can’t raise the debt ceiling in the country but we can in USPS so they can make 2 more payments to the pre-funding (govt treasury). Hmmm

  • M Adams

    Issa is an IDIOT!! Giving us the ability to use the prepaid funds is not a Bail out. Does he really think that it is best to put thousands of postal employees in the unemployment lines, more homes to foreclose on!!! What the postal service needs is the ability to price our products competively. No where else in the world can you mail a letter to the bottom of the Grand Canyon or the deep wilderness of Alaska for just 44 cents. Stop the excessive prepayement of retiree health benefits, let us use what we have already prepaid. Eliminate Saturday delivery would actually end up costing the USPS more money in lost revenue in the future, and i’m sure some other company would be more than willing to pick up that day for their own

  • Larry Reinsch

    He deceives the public with his lies and wages class warfare against the Middle Class. We must vote the Republicans out of office!