Postal Regulatory Commission Rebuts USPS Five-day Delivery Proposal
The following chart provides a comparison of PRC and U.S. Postal Service analyses of cost savings and revenue losses that would result from implementing the proposed service reductions. The net savings totals would likely not be achieved until three years after implementation.
Financial Impact of Postal Service Plan (millions) | |||
Postal Service Savings Estimate |
Commission Finding |
Difference |
|
City Carriers | $2,263 | $1,503 | $760 |
Rural Carriers | 484 | $484 | $0 |
Transportation | $377 | $169 | $208 |
Mail Processing | $123 | $67 | $56 |
Post Office Operations | $53 | $53 | $0 |
Total Savings | $3,300 | $2,276 | $1,024 |
Lost Revenue | ($201) | ($587) | $386 |
Net Savings | $3,099 | $1,689 | $1,410 |
The elimination of one mail delivery day has been proposed many times and was the subject of extensive congressional review in 1977 and 1980. In 1983, Congress adopted specific language requiring the Postal Service to maintain six-day delivery. The commission’s Advisory Opinion will be considered by Congress as it reviews the Postal Service’s request to change the law.
The PRC held extensive public, on-the-record hearings to analyze and cross-examine the Postal Service’s proposal and supporting evidence. Mail users, postal employees, elected officials, community leaders and members of the public provided supporting and opposing views, both informally and as part of more formal, technical presentations. It also conducted seven field hearings and received thousands of public comments through its website.
“All five commissioners have signed the necessary certification for this Advisory Opinion,” Goldway said. “The Postal Service remains a vital, beloved and important institution facilitating economic growth, aiding small businesses, enhancing communications and unifying the nation. A decision to change the existing patterns of postal communications and delivery should be made with care.”
About the Postal Regulatory Commission
The Postal Regulatory Commission is an independent federal agency that provides regulatory oversight over the U.S. Postal Service to ensure the transparency and accountability of the Postal Service and foster a vital and efficient universal mail system. The commission is comprised of five Presidentially appointed and Senate-confirmed commissioners, each serving terms of six years. The chairman is designated by the President.
Source: press release.