Senate’s Postal Service Bill Disappoints Board of Governors, Postmaster General

WASHINGTON, DC—April 25, 2012—The following statements are in response to the vote by the U.S. Senate to approve S 1789, the 21st Century Postal Reform Act.

Statement of the Board of Governors of the U.S. Postal Service:

The board, in working with management, has spent the past two years preparing a comprehensive business plan to make the Postal Service viable so it would not become a liability to the American people. This plan was validated by outside experts. We stand behind this plan, and we are convinced it is the right approach.

Unfortunately, action by the Senate today falls far short of the Postal Service’s plan. We are disappointed that the Senate’s bill would not enable the Postal Service to return to financial viability. A strong Postal Service is important to the health of the entire mailing industry and the Postal Service’s ability to finance universal service for the American public.

Given volume losses we have experienced over the past five years along with expected future trends, it is totally inappropriate in these economic times to keep unneeded facilities open. There is simply not enough mail in our system today. It is also inappropriate to delay the implementation of five-day delivery when the vast majority of the American people support this change. Failure to act on these changes will ensure that the Postal Service’s losses will continue to mount.

We remain hopeful that Congress will ultimately produce legislation that will enable the Postal Service to return to financial viability.

Patrick R. Donahoe, Postmaster General and CEO of the U.S. Postal Service:

“We appreciate the hard work of the Senate in addressing postal issues, and we believe that there are important and valuable provisions contained in the legislation. We would have preferred the Senate allow the Postal Service to move further and faster in addressing its cost reduction goals.

Today, the Postal Service incurs a daily loss of $25 million and has a debt of more than $13 billion. Based on our initial analysis of the legislation passed today, losses would continue in both the short and long term. If this bill were to become law, the Postal Service would be back before the Congress within a few years requesting additional legislative reform.

The Postal Service does not seek to be a burden to the American taxpayer, and we believe such an outcome is entirely avoidable. The Postal Service has advanced a comprehensive five-year plan that would enable revenue generation and achieve cost reductions of $20 billion by 2015—restoring the Postal Service to long-term profitability.

The plan we have advanced is a fair and responsible approach for our customers, our employees and the communities we serve. We are hopeful that the legislative process will continue and that enacted legislation will put the Postal Service on a sustainable path to the future.”

Source: USPS.

  • Steven

    Typical of the Senate to think they know more about running the USPS than the USPS does. First of all, get rid of the pre-funding of the pensions. Next, close the plants that are not needed due to the vastly decreased volume. Third, drop Saturday delivery, as no one cares if they get mail on Saturday besides Netflix (which is already a failure when it comes to delivering products via mail) The USPS does not need a handout, it needs to be allowed to operate at a much higher degree of efficiency, and there is little or nothing in the Senate bill to accomplish that. The Senate – both parties – are more interested in caving for votes than they are in coming up with a true money saving solution! Typical!

  • inkslinger

    Remove Federal law making it a crime for anyone but the USPS to place mail, shipments etc. in my mailbox on my property paid for by me. This single action would help competitive private sector efforts create profitable services to fill in service gaps. Why should some oddly contrived business model like the USPS have a monopoly on my mailbox?

  • Tom Jones

    Ineptitude rules. Steven got it in one: Scrap Saturday mail, close the friggin’ processing centers they don’t need, get rid of post offices and put mini post office in stores like they do in Europe, and most of all, stop pre-loading pensions. What’s so hard about it? I’m in the printing industry and I don’t support needless capacity. As it is, EDDM is going to severely cut into direct mail that requires sorting even more over time. Idiots. Doesn’t matter what party, no one wants to govern responsibly.

  • Carol Edinger

    I agree with Steven and Tom. We must allow the postal system to close unneeded facilities. What is wrong with Congress – doesn’t anyone read the proposals before they change them?