Lawmaker hopes panel's report will drive reform at Postal Service

A postal commission report due by the end of the month may finally provide momentum for much needed reform at the Postal Service, Rep. John McHugh, R-N.Y., said Tuesday at a forum hosted by a postal workers' union.

By July 31, the nine-member Commission on the U.S. Postal Service, created in December, will deliver a report to President Bush that recommends enhancing the Postal Service's financial viability. The report will suggest that the agency retain a monopoly on delivering the mail, but work on consolidating its facilities and consider outsourcing some tasks. Panel members would also like to grant the agency more flexibility to initiate rate hikes.

McHugh, who has chaired the House Government Reform Committee's Special Panel on Postal Reform and Oversight since 1994, said he has yet to convince many of his fellow lawmakers, or the public at large, that the Postal Service needs a major overhaul. The agency is using an obsolete business model developed in the 1970s, McHugh said in an address at the Brookings Institution to the American Postal Workers Union and other interest groups.

Without reforms, the Postal Service cannot improve its financial health, according to McHugh. The agency ran a $1.7 billion deficit in fiscal 2001 and a $676 million deficit in fiscal 2002. A declining volume of mail is partly to blame, he added. But lawmakers will probably not enact significant postal reform bills until they have a "crisis" on their hands, McHugh speculated. "When things are going to hell, that's when we'll deal with it."

Polls may demonstrate that constituents are generally satisfied with the mail services they receive, McHugh said, but this does not mean that agency reforms are unnecessary. "The vast majority of the American public not only likes, but appreciates the postal services they get because their perspective is from the front porch," he said. "By and large, people don't even think about the Postal Service."

The postal pension reform bill signed by President Bush in late April will help the Postal Service, McHugh said. But he added that he is worried some of his colleagues will view the legislation, which locks postal rates at the current level until 2006 by reducing the amount the Postal Service contributes to the Civil Service Retirement System by $2.9 billion, as the only reform needed.

McHugh said he hopes the commission's report will provide the impetus for reform that has been lacking so far. Whether lawmakers and interest groups agree with the content of every recommendation issued by the commission, its report should foster constructive discussions, he said. The House Panel on Postal Reform and Oversight will hold hearings on the commission's report after its release, McHugh said. Hearing dates have yet to be determined.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.


When you download a report, your information may be shared with the underwriters of that document.