GAO urges Congress to pass broad postal overhaul

In a letter to Senate Governmental Affairs Committee Chairwoman Susan Collins, R-Maine, Comptroller General David Walker said, "Comprehensive postal reform is urgently needed," and the service is threatened by declining mail volume, uncertain funding for emergency preparedness and an outdated and inflexible rate-setting process.

Walker said small-scale changes cannot "resolve the fundamental and system issues associated with the service's current business model."

Only full reform can "avoid the risk of significant taxpayer bailout or dramatic postal rate increases," Walker said.

He advocated increased flexibility for the service to change its rates and make infrastructure and workforce changes.

GAO placed the postal service on its "high risk" list in 2001, and Walker has testified to Congress several times since then on the need for change.

Collins and House Government Reform Committee Chairman Tom Davis, R-Va., have made postal reform a top legislative priority for their committees this year.