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Press Release Published: Sep 19, 2011

Issa on President’s Proposed Bailout for Postal Service: “Not what taxpayers or the Postal Service needs”

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WASHINGTON, D.C. – In response to a proposal outlined by President Obama on the United States Postal Service, Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, which oversees the Postal Service, issued the following statement:

“The President’s proposal is not what taxpayers or the Postal Service needs.  The President’s plan to achieve savings for the Postal Service does so by sticking taxpayers with the tab. Rather than backing an effort to seek fundamental reform, the accounting gimmicks used in the plan are a thinly veiled attempt to offset continued operating losses with a taxpayer funded bailout. The Oversight Committee will move forward and consider a separate proposal Wednesday, the Postal Reform Act, that will produce at least $10.7 billion annually in savings for the Postal Service and doesn’t stick taxpayers with the bill,” Issa said.

Facts about President Obama’s Proposal to Kick the Can down the road for the Postal Service:

  • The numbers do not add up. The Obama proposal will certainly cost taxpayers money.
  • The only proposal put forth by the President that offers clear savings for the Postal Service, without passing the burden on to taxpayers, is giving USPS authority to reduce mail delivery from six days to five days.  The Issa-Ross Postal Reform Act also includes this provision.
  • The Obama proposal fakes its “savings” through an insidious budget gimmick, and must rely on fuzzy accounting in order to “save $10 billion dollars.”
  • There is no surplus to pay for the pension payment “holiday”
    • The Civil Service Retirement Disability Fund, out of which all federal employee pensions benefits are paid, is underfunded for USPS, according to the most recent estimate.
    • The President proposes taking money from one fund, Federal Employee Retirement System, even while the other fund, the Civil Service Retirement System fund, is underfunded.
  • Obama calls for “bold action” and “comprehensive reform” but proposes neither.

More information on the Postal Service crisis and the Issa-Ross Postal Reform Act of 2011 is available at http://SavingThePostalService.com

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