Postal Crisis 101 - Saving The Postal Service
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| Figure as of 10/12/2011 Click To See the Current Amount |
A better USPS, however, is possible. Explore the site. Get the facts. Learn about the Issa-Ross Postal Reform Act. Advise Congress on how to fix Postal budget shortfalls with the Postal Reform App. Americans deserve an efficient USPS that delivers for decades. But misguided action - or none at all - could saddle taxpayers with a multi-billion dollar bailout for the Postal Service. The clock is ticking!
The Issa-McCain-Ross Postal Reform Act of 2011 is the only plan that removes road blocks which prevent the Postal Service from reducing expenses in line with declining revenue, implementing cost-cutting structural reforms, and ensuring the PostalService meets its obligations without exposing taxpayers to a multi-billiontaxpayer funded bailout. Visit SavingThePostalService.com to learn more.
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Posted by Bill Smith at 1:27 PM - Post Link
4 Comments:
Darrell Issa is right. Taxpayers may have to pick up the tab after the overpaid pension funds are returned to the postal service. However, the overpaid pension funds are not extra monies laying around for Issa and others to use to make it appear that they are paying down on the debt. It is not the taxpayers money. It is not Issa's money. It belongs to the Postal Service. Darrell Issa is simply wro...ng to want to use those pension funds for other purposes. Issa's plan is deceitful at best and criminal at worst. How would employees of a private company feel about their employer using pension funds to fund company operations? There would be an outcry, an investigation, and someone would likely go to prison. Issa's plan is no different. Issa's plan is damaging to this country.
This issue of post office closings is quickly becoming a Democratic vs Republican issue and a rural vs urban issue. If it continues, voters in rural areas that have been voting Republican, like myself, will be forced because of this issue to vote Democratic in the 2012 election.
Anonymous, You need to read the following. I may have to post these links as several comments:
GAO Confirms: Postal “Overpayment” Really a Taxpayer-Funded Bailout -
Read the GAO Report
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The Washington Post - The Postal Service isn’t owed a big refund, GAO says - "Transferring tens ofbillions of dollars in federal worker retirement accounts back to the U.S. Postal Service would not address its long-term debt problems and would force unfunded liabilities on to taxpayers, according to a new government report.
"The conclusions set for release Thursday by the Government Accountability Office run counter to the opinions of postalregulators, the postal inspector general and congressional Democrats, who say Congress should refund as much as $75 billion to the Postal Service for improperly overpaying federal retirement accounts since the 1970s. . . .
"In recent years as mail volume started to fall and USPS started seeking relief, the Postal Regulatory Commission, the Postal Service inspector general and two independent accounting firms concluded that those pension calculations set in the 1970s forced the Postal Service to overpay the CSRS by billions of dollars.
"But GAO concluded otherwise, writing in its report that “We have not found evidence of error of these types. Any attempt to refund money to USPS “would be a significant change from a policy” in place since the 1970s, it said.
"Returning money to the Postal Service for past and future retirement payments would cause as much as $85 billion in losses for taxpayers “which must then be paid by the federal government through tax revenue or borrowing,” GAO said. And any refund “would not be sufficient to repay all of USPS’s debt and address current and future operating deficits.”"
Bloomberg - Refund of $75 Billion Wouldn’t Fix Postal Service, GAO Says . . . "The Postal Service and its labor unions have said that getting back the $50 billion to $75 billion it has paid into the civil-service retirement system would reduce the need to eliminate as many as 220,000 jobs and close up to 15 percent of its post offices.
"Giving the money to the Postal Service would increase the U.S. government’s pension liability by as much as $85 billion and would cause it to borrow or use tax revenue to make up the difference, the GAO said."
The Daily Caller - GAO says USPS proposal would amount to a bailout
"USPS contends that the $8.5 billion it lost last year, and the $10 billion it is projected to lose this year, is because it has paid too much money to the federal government to fund retiree health benefits, and it would like to be given access to that overpaid sum in order to help alleviate some of the financial pressure.
"But in a document obtained by The Daily Caller to be released later on Wednesday, the GAO says that based on its analysis, there is no such overpayment. Moreover, it concludes, to pay out the requested money would only stave off disaster, not solve USPS’ underlying financial problems, and instead, it would simply increase the federal government’s liability, which would have to be funded through tax revenue and borrowing, in other words, by taxpayers. . . . .
"The Office of Personnel Management, on the other hand, recommended that the system stay as is. That agency, which would be responsible for doling out these funds, noted that congressional action would be required to allow any transfer of funds, and concluded that it would be taxpayers who would ultimately bear the burden of the transfer.
"The GAO report concurs with the oneissued by OPM.
“Application of the approaches proposed by the USPS OIG and PRC reports would result in a significant transfer of pension costs from USPS to the federal government, and thereby to taxpayers,” says the report."
Shut the postal system down. They have be a sore thumb on the tax payers long enough.they have been subsidized long enough. Time to clean up and cut.
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