Postal Service Deficit: A Fabricated Crisis

Well,  once again the spectre of postal service layoffs and service cuts looms large.   Also,  it seems as if we're being conditioned to accept downsizing of the US Postal Service (USPS)  as a done deal.

As I understand it,  there's no earthly reason why the USPS needs to be downsized at all,  at least for now.  Here's why:

First of all,  a clarification:   The postal system receives no funding from the Federal Government;  its revenue is generated by the services it provides.   Also,  it's true that the volume of first-class mail has shrunken in recent times;   but so has the roster of postal workers,  largely by attrition.   The upshot is that the USPS is not overstaffed.

 Here's a brief history of events leading to the creation of the "deficit".   After  Democrats gained control of the House in November,  2006,    the still-Republican majority in the now-lame-duck Congress crafted a bill that seemed designed to cripple the postal system's finances.    It mandated funding of the employee pension plan 75 years forward beginning in 2007.   In addition,  the mandate imposed a ten-year deadline for fully funding the plan.    As unbelievable as this may seem,  I'm not making it up!

Prior to 2007,  the postal service had been posting modest annual surpluses.   With the new mandate,
that all changed.  In order to fulfill the new pension obligation,  roughly  $5 billion a year of the USPS's revenue is being diverted to the pension fund.  Hence,  the "deficit".    So,  future postal employees who haven't yet been conceived can now look forward to a comfortable retirement.

In the meantime,  a Democratic congressman from Massachusetts,  Steven Lynch,  has introduced a bill that would restore the postal system's surplus while still providing a realistic level of funding for the retirement plan.  (HR 1351:   The USPS Pension Obligation & Restoration Act of 2011).  According to the Congressional Record,   228 House members have signed on as co-sponsors,   more than enough to ensure passage were the bill to come up for a vote.

However,  since April 8th of last year,  the measure has been languishing in a subcommittee,  thanks in large part to Darrell Issa (R-CA),   chairman of the House Oversight & Government Reform Committee. Mr.  Issa has introduced an alternative bill,  which would in effect gut the postal system.  (HR 2309:  The  Postal Reform Act of 2011).

(Incidentally,  if Darrell Issa's name rings familiar,  here's why:  This is the guy who recently chaired a Congressional anti-contraception panel:   all-male!  No women need apply!).

Unless HR 1351 is revived,   the USPS ---  as well as the many customers who really depend on it --- will face a bleak future.   The areas most seriously impacted by the cuts would be remote rural regions and struggling urban communities ---  many of which are already resource-starved.   Not to be overlooked,  120,000 jobs with decent wages and benefits would likely disappear.

With enough public pressure,  maybe HR 1351 could be resuscitated.   Any sort of exposure within the mainstream media might lend it some momentum.   So much the better if President Obama could offer some encouragement.