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The Postal Service announced Tuesday that it finished fiscal 2003 with a $3.9 billion budget surplus, exceeding its projections by $300 million.

"These financial results are important to the American consumer and American businesses, for they reinforce our confidence that we can hold current stamp prices unchanged until 2006," said Richard Strasser, the Postal Service's chief financial officer, at a meeting of the Postal Board of Governors.

Strasser said the financial results were partly the result of a $2 billion cost-cutting initiative postal managers undertook early in the fiscal year. The productivity of the postal workforce in fiscal 2003 was twice that anticipated in the agency's financial plans.

The results come at a time when Congress is considering major reforms to postal operations. On Monday, President Bush met with members of the nine-member bipartisan commission created a year ago to recommend steps to overhaul the Postal Service. After the meeting, the White House urged Congress to pass postal reform legislation based on five principles:

• Implement best practices. Ensure that the Postal Service's governing body is equipped to meet the responsibilities and objectives of an enterprise of its size and scope.
• Transparency.
Ensure that important factual information on the Postal Service's product costs and performance is accurately measured and made available to the public in a timely manner.
• Flexibility.
Ensure that the Postal Service's governing body and management have the authority to reduce costs, set rates, and adjust key aspects of its business in order to meet its obligations to customers in a dynamic marketplace.
• Accountability.
Ensure that a Postal Service operating with greater flexibility has appropriate independent oversight to protect consumer welfare and universal mail service.
• Self-Financing.
Ensure that a Postal Service operating with greater flexibility is financially self-sufficient, covering all of its obligations.

The White House did not make specific recommendations for implementing the principles.

In response to the White House statement, House Government Reform Committee Chairman Tom Davis, R-Va., Ranking Member Henry A. Waxman D-Calif., Rep. John M. McHugh, R-N.Y., head of the committee's Special Panel on Postal Reform and Oversight, and the special panel's ranking member, Rep. Danny Davis, D-Ill., Monday said they would make postal reform a top priority for the second session of the 108th Congress.

"The Postal Service continues to be hampered by flagging revenue, high costs and an untenable debt load," the legislators said in a joint statement. "This crisis has been brewing for years, and it's time to act on comprehensive reform."

COMMENTS

• The Post Office needs to understand that the Government is a representative body of elected people who are watching out for us the common man (the voters)... not big business police or loan officers. Like other industries there should be regulations to make sure, fair pratices, goods and services are given to us the public. Still I believe less government is the best government. Any other company has to be self sufficiant when it comes to the aspects of business. The U.S. goverment needs to step back and utilize the knowledge gained from what they have been able to accomplish with the telecommunication industry, airlines industry, etc. and see if there is a better way to have all mailing services work together while still allowing the free trade competition as part of the postal business. If the U.S. Post Office or any corporate identity can not compete then it should become part of history. Like other businesses they need to get their current budget, benefits, debts issues balanced/taken care of and make sure there is no doubt for the retired workers benefits to be also covered. In any industry with competition there is always a slide of control/market share. The people choose ... who they trust. Support the peoples needs and you will gain their respect and their business. This works for all aspects of any business out here. I also agree with one of the other comments that the junk mail of today (unsolicited mail) needs to be gotten under control/rid of in fact. No one likes it and in my opinion it is a type of pollution. This even goes for the ads from retailers, catalogs from stores and of course the specials from credit card companies to name a few. I should only recieve mail I request, want as a consumer and of course our objective bills of my utility usage. Lets "STOP" the unnecessary killing of trees and wasted spaces in our landfills in our world today by all this wasted paper. I do understand companies need to advertise their services and goods, but their are better ways to advertise today than the printed materials that are just thrown away. Lets not only have better services, but have better environmental responsibility too. Let individual choices keep business strong and not governmental introventions weaken our society. John Posted November 25, 2004 10:41 PM
• It's not surprising that they've dug themselves out of their hole by charging us higher and higher rates for the services they provide. I often wondered how they could afford to sponsor sporting events and have novelty items in the post office for sale. I guess keeping you waiting in line for 30 minutes because there's only one line open during lunch, charging you higher rates for first class mail, and charging excessive rates for parcel post worked. I personally use fed-ex ground to mail my packages. Great service, lower prices, better service. Too bad they can't handle my first class mail too. GovExec.com reader Posted December 16, 2003 9:17 AM
• Pretty soon we'll see USPS listed on the New York Stock Exchange. GovExec.com reader Posted December 15, 2003 12:18 PM