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Financial State of the U.S. Postal Service

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Financial State of the U.S. Postal Service THE FINANCIAL STATE OF THE U.S. POSTAL SERVICE HEARING BEFORE THE SUBCOMMITTEE ON FEDERAL WORKFORCE, POSTAL SERVICE, AND THE DISTRICT OF COLUMBIA OF THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION MARCH 25, 2009 Serial No. 111–1 Printed for the use of the Committee on Oversight and Government Reform ( Available via the World Wide Web: http://www.gpoaccess.gov/congress/index.html http://www.house.gov/reform VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00001 Fmt 6011 Sfmt 5011 U:\DOCS\50649.TXT KATIE PsN: KATIE VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00002 Fmt 6011 Sfmt 5011 U:\DOCS\50649.TXT KATIE PsN: KATIE THE FINANCIAL STATE OF THE U.S. POSTAL SERVICE VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00003 Fmt 6019 Sfmt 6019 U:\DOCS\50649.TXT KATIE PsN: KATIE VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00004 Fmt 6019 Sfmt 6019 U:\DOCS\50649.TXT KATIE PsN: KATIE THE FINANCIAL STATE OF THE U.S. POSTAL SERVICE HEARING BEFORE THE SUBCOMMITTEE ON FEDERAL WORKFORCE, POSTAL SERVICE, AND THE DISTRICT OF COLUMBIA OF THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION MARCH 25, 2009 Serial No. 111–1 Printed for the use of the Committee on Oversight and Government Reform ( Available via the World Wide Web: http://www.gpoaccess.gov/congress/index.html http://www.house.gov/reform U.S. GOVERNMENT PRINTING OFFICE 50–649 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00005 Fmt 5011 Sfmt 5011 U:\DOCS\50649.TXT KATIE PsN: KATIE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM EDOLPHUS TOWNS, New York, Chairman PAUL E. KANJORSKI, Pennsylvania DARRELL E. ISSA, California CAROLYN B. MALONEY, New York DAN BURTON, Indiana ELIJAH E. CUMMINGS, Maryland JOHN M. MCHUGH, New York DENNIS J. KUCINICH, Ohio JOHN L. MICA, Florida JOHN F. TIERNEY, Massachusetts MARK E. SOUDER, Indiana WM. LACY CLAY, Missouri TODD RUSSELL PLATTS, Pennsylvania DIANE E. WATSON, California JOHN J. DUNCAN, JR., Tennessee STEPHEN F. LYNCH, Massachusetts MICHAEL R. TURNER, Ohio JIM COOPER, Tennessee LYNN A. WESTMORELAND, Georgia GERRY E. CONNOLLY, Virginia PATRICK T. MCHENRY, North Carolina ELEANOR HOLMES NORTON, District of BRIAN P. BILBRAY, California Columbia JIM JORDAN, Ohio PATRICK J. KENNEDY, Rhode Island JEFF FLAKE, Arizona DANNY K. DAVIS, Illinois JEFF FORTENBERRY, Nebraska CHRIS VAN HOLLEN, Maryland JASON CHAFFETZ, Utah HENRY CUELLAR, Texas AARON SCHOCK, Illinois PAUL W. HODES, New Hampshire CHRISTOPHER S. MURPHY, Connecticut PETER WELCH, Vermont BILL FOSTER, Illinois JACKIE SPEIER, California STEVE DRIEHAUS, Ohio ——— ——— ——— ——— ——— ——— RON STROMAN, Staff Director MICHAEL MCCARTHY, Deputy Staff Director CARLA HULTBERG, Chief Clerk LARRY BRADY, Minority Staff Director SUBCOMMITTEE ON FEDERAL WORKFORCE, POSTAL SERVICE, AND THE DISTRICT OF COLUMBIA STEPHEN F. LYNCH, Massachusetts ELEANOR HOLMES NORTON, District of JASON CHAFFETZ, Utah Columbia JOHN M. MCHUGH, NEW YORK DANNY K. DAVIS, Illinois JOHN L. MICA, Florida ELIJAH E. CUMMINGS, Maryland MARK E. SOUDER, Indiana DENNIS J. KUCINICH, Ohio, Chairman BRIAN P. BILBRAY, California WM. LACY CLAY, Missouri GERRY CONNOLLY, Virginia WILLIAM MILES, Staff Director (II) VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 U:\DOCS\50649.TXT KATIE PsN: KATIE C O N T E N T S Page Hearing held on March 25, 2009 ............................................................................ 1 Statement of: Burrus, William, president, American Postal Workers Union, AFL–CIO; William H. Young, president, National Association of Letter Carriers, AFL–CIO; John F. Hegarty, National president, National Postal Mail Handlers Union; and Don Cantriel, president, National Rural Letter Carriers’ Association ..................................................................................... 144 Burrus, William ......................................................................................... 144 Cantriel, Don ............................................................................................. 190 Hegarty, John F. ....................................................................................... 162 Young, William H. ..................................................................................... 154 Gallagher, Carolyn, chairman, Board of Governors, U.S. Postal Service; and Dan G. Blair, chairman, Postal Regulatory Commission ................... 44 Blair, Dan G. ............................................................................................. 52 Gallagher, Carolyn .................................................................................... 44 Goff, Dale, president, National Association of Postmasters of the United States and Postmaster of Covington, LA; Charles W. Mapa, president, National League of Postmasters; and Ted Keating, president, National Association of Postal Supervisors ................................................................ 108 Goff, Dale ................................................................................................... 108 Keating, Ted .............................................................................................. 133 Mapa, Charles W. ...................................................................................... 116 Potter, John E., Postmaster General and CEO, U.S. Postal Service ........... 9 Williams, David C., Inspector General, U.S. Postal Service; and Phillip Herr, Director, Physical Infrastructure Issues, U.S. Government Ac- countability Office ......................................................................................... 71 Herr, Phillip ............................................................................................... 79 Williams, David C. .................................................................................... 71 Letters, statements, etc., submitted for the record by: Blair, Dan G., chairman, Postal Regulatory Commission, prepared state- ment of ........................................................................................................... 54 Burrus, William, president, American Postal Workers Union, AFL–CIO, prepared statement of ................................................................................... 147 Cantriel, Don, president, National Rural Letter Carriers’ Association, prepared statement of ................................................................................... 192 Gallagher, Carolyn, chairman, Board of Governors, U.S. Postal Service, prepared statement of ................................................................................... 47 Goff, Dale, president, National Association of Postmasters of the United States and Postmaster of Covington, LA, prepared statement of ............. 111 Hegarty, John F., National president, National Postal Mail Handlers Union, prepared statement of ...................................................................... 164 Herr, Phillip, Director, Physical Infrastructure Issues, U.S. Government Accountability Office, prepared statement of ............................................. 81 Keating, Ted, president, National Association of Postal Supervisors, pre- pared statement of ........................................................................................ 135 Lynch, Hon. Stephen F., a Representative in Congress from the State of Massachusetts: Prepared statement of ............................................................................... 3 Questions for the record ........................................................................... 24 Mapa, Charles W., president, National League of Postmasters, prepared statement of ................................................................................................... 118 McHugh, Hon. John M., a Representative in Congress from the State of New York, prepared statement of ........................................................... 206 (III) VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00007 Fmt 5904 Sfmt 5904 U:\DOCS\50649.TXT KATIE PsN: KATIE IV Page Letters, statements, etc., submitted for the record by—Continued Potter, John E., Postmaster General and CEO, U.S. Postal Service, pre- pared statement of ........................................................................................ 12 Williams, David C., Inspector General, U.S. Postal Service, prepared statement of ................................................................................................... 74 Young, William H., president, National Association of Letter Carriers, AFL–CIO, prepared statement of ................................................................ 157 VerDate 11-MAY-2000 14:36 Aug 03, 2009 Jkt 000000 PO 00000 Frm 00008 Fmt 5904 Sfmt 5904 U:\DOCS\50649.TXT KATIE PsN: KATIE THE FINANCIAL STATE OF THE U.S. POSTAL SERVICE WEDNESDAY, MARCH 25, 2009 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON FEDERAL WORKFORCE, POSTAL SERVICE, AND THE DISTRICT OF COLUMBIA, COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM, Washington, DC. The subcommittee met, pursuant to notice, at 10:17 a.m., in room 2154, Rayburn House Office Building, Hon. Stephen F. Lynch (chairman of the
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