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Question of the Day
BALTIMORE — Congressmen and union workers rallied here Tuesday in support of a bill that could help revive the financially ailing U.S. Postal Service by allowing the agency access to $21 billion paid into its retirement fund.
“If we don’t resolve this issue, my understanding is we are going to lose 126,000 jobs in the United States,” said Rep. C.A. Dutch Ruppersberger, Maryland Democrat. “That’s unacceptable. I’m saying let’s stand up and get the message out that we aren’t using taxpayers’ money.”
The U.S. Postal Service has proposed cutting costs by $3 billion, laying off more than 110,000 workers nationwide and potentially closing 42 post offices and four processing facilities in Maryland, to shore up its depleted finances.
Reps. Elijah Cummings and John Sarbanes, both Maryland Democrats, joined Mr. Ruppersberger at the Baltimore Teachers Union with union leaders and postal workers at a rally to stump for HR-1351, a bill to allow the U.S. Postal Service to reduce required pension payments to meet current financial needs.
In 2006, Congress gave the Postal Service 10 years to fund 75 years in advance of future health benefits, amounting to $5.5 billion per year. That money, supporters said, caused the post office’s financial woes, not the decrease in mail volume.
“Congress, you helped make this problem. We’re saying very clearly we need you to correct it,” said Marvin “Doc” Cheatham, president of the National Action Network, Baltimore Chapter. “How can you expect a government agency … to put aside billions of dollars for people not even born yet.”
“We know that there is going to have to be downsizing,” Mr. Cummings said. “Everybody in this room knows that and it’s not the post office’s fault, it’s not the workers’ fault. It’s just that first-class mail has gone down substantially. The Internet is taking over.”
Mr. Cummings said committee Chairman Darrell Issa, California Republican, was stalling the legislation.
Mr. Issa sponsored his own bill addressing the Postal Service financial problems, titled the Postal Reform Act, which has only one other cosponsor, Rep. Dennis Ross, Florida Republican.
Ali Ahmad, oversight committee spokesman, said Mr. Issa’s bill “is the only bill introduced this Congress that makes the cost-cutting structural reforms necessary to return the Postal Service to profitability.”
Mr. Issa’s bill sets up a commission to submit a plan to Congress to close or consolidate postal retail facilities, mail processing plants and offices; change to a five-day mail delivery schedule and eliminate postal rate preferences for political committees and reduce rate preferences for nonprofit organizations. That bill has moved through committee and is expected to come to a floor vote.
Mr. Ahmad called it a myth that eliminating the requirement to fund pensions years in advance would solve the post office’s financial troubles. If those mandates were eliminated, he said, the Postal Service would have an unfunded liability of nearly $100 billion by 2017.
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