Obama Endorses Ending One Day of Mail Delivery — Probably Saturday

Tuesday, 20 Sep 2011 09:13 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

WASHINGTON — President Barack Obama says the U.S. Postal Service should be allowed to reduce mail delivery to five-days-a-week to help cut its massive losses.

The Postal Service lost $8.5 billion last year and is facing even more red ink this year as the Internet siphons off large amounts of first-class mail and the weak economy reduces advertising mail.

While the post office has cut more than 100,000 workers in the last few years it needs to cut more, close offices and find other ways to reduce costs to keep operating.

In his economic growth and debt reduction plan unveiled Monday, Obama endorsed the idea of dropping one day of mail delivery — it is expected to be Saturday — and urged other changes in postal operations

He agreed that nearly $7 billion the post office has overpaid into the federal retirement system should be refunded to the agency, urged that its payments for advance funding of retiree medical benefits be restructured, and said the post office should be allowed to sell non-postal products and raise postage rates.

The Postal Service is not allowed to raise rates more than the amount of inflation.

Postmaster General Patrick Donahoe said the president "has offered helpful recommendations to stabilize the Postal Service's financial crisis."

Sen. Tom Carper, D-Del., who has proposed a bill including many of the same suggestions, welcomed the president's statement.

"I have been saying for some time now that Congress and the administration need to come together on a plan that can save the Postal Service and protect the more than seven million jobs that rely on it," he said in a statement.

Rep. Darrell Issa, R-Calif., who has his own postal reform bill in the House, responded that "the president's proposal is not what taxpayers or the Postal Service needs."

He asserted that Obama's plan "will certainly cost taxpayers money."

“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,” Issa said.

The Postal Service does not receive tax funds for its operations.

Meanwhile, 75 members of Congress led by Reps. Gerry Connolly, D-Va., and Don Young, R-Alaska, called on the independent Postal Regulatory Commission to block the post office's plans to close as many as 3,700 local offices across the country.

The proposed closures, most in rural locations that do little business, are currently under review.

The letter called for establishment of a new business model for the Postal Service without closing offices and cutting its work force.


© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Rand Paul Reaches Out to Minority Voters With Equality Speech

Friday, 25 Jul 2014 14:07 PM

U.S. Senator Rand Paul sought to broaden his reach beyond core Republican voters with a speech to the National Urban Lea . . .

Rep. Luis Gutierrez: Refugee Status for Illegal Kids Unlikely

Friday, 25 Jul 2014 13:53 PM

It's unlikely that children in Central America who want to come to the United States will be able to obtain refugee stat . . .

Justice Department Official: US at 'Pre-9/11' Point on Cyber Attacks

Friday, 25 Jul 2014 13:45 PM

The United States is in a "pre-9/11 moment" with al-Qaida and other terror groups preparing major cyber attacks against  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved