WASHINGTON—Postmaster General Megan Brennan called for sweeping postal reform at the U.S. Postal Service’s Temporary Emergency Committee meeting Friday morning, as the Postal Service faces another year of financial losses.
“Despite our best efforts, under the current legal framework we will not be able to stem the tide of our ongoing losses and return to financial stability without legislative change,” she said.
Brennan called on Congress to pass the Postal Reform Act of 2017 and to confirm President Trump’s nominees to the currently-vacant Postal Service Board of Governors.
According to the Postal Service’s website, the board is responsible for implementing an array of postal policies, including the company’s budget and long-term planning.
President Trump made three nominations to the board in October, but the Senate has yet to confirm them.
The Senate Committee on Homeland Security and Governmental Affairs, which oversees postal policy and is responsible for initial confirmation of the Board nominees, did not respond to our emails asking when nominee confirmations might occur.
Nonetheless, Brennan was hopeful that the nominees would be confirmed soon.
“We’re encouraged, in talking with some of our key public officials, that they understand the urgency of this,” she said in a web conference. “As we’ve said from the outset…we are best served, as is the American public, by having a fully constituted board, so I’m optimistic we’ll have them confirmed and on board by our next scheduled meeting.”
As for the Postal Reform Act of 2017, former Rep. Jason Chaffetz, R-Utah, introduced the bill in January of last year, but Congress has made no recent move to approve the bill.
If passed, the bill would amend the Postal Service’s employee and retiree health benefits and revise rules surrounding postal rate changes. The bill would also allow the Postal Service to work with state and local authorities to provide government goods and services and would encourage the use of centralized delivery, through which customers can opt to pick up their mail at a centralized location instead of at their front door.
The bill establishes a Postal Service “Chief Innovation Officer” to focus on innovation within the company and would reduce the number of seats on the Board of Governors to five, which has historically consisted of nine governors, who serve seven-year terms.
At Friday’s meeting, Chief Financial Officer Joe Corbett outlined the Postal Service’s financial results in quarter one of fiscal year 2018. The Postal Service faced a net loss of $540 million, as first class mail revenues declined about four percent and marketing mail revenues declined about five percent. With the holiday season, package revenues increased around nine percent and international mail revenues increased around the same amount. However, this was not enough to offset the losses.
Brennan attributed the Postal Service’s financial troubles to the high cost of employee benefit programs and to the Congressional mandate to deliver to every American home and business. She suggested that the price cap on stamps and mail services prevents the Postal Service from earning enough revenue to cover costs. She also noted that current regulations limit the Postal service’s “ability to pursue new sources of revenue.”
The National Association of Letter Carriers, the national labor union for city-delivery mail carriers, released a statement on the Postal Service’s first quarter results, echoing the Postmaster General’s call for action from Congress.
“Congress should address the pre-funding burden it imposed in 2006, which requires USPS — alone among all public and private entities — to prefund future retiree healthcare benefits decades into the future,” they wrote. “This produces an onerous annual burden of billions of dollars.”
The only current postal legislation being considered by Congress is the renaming of post offices, a common practice to honor community leaders and other important officials.
by Tasos Kalfas, @TasosKalfasWRGW