Solutions to the Crisis Facing the Us Postal Service Hearing
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S. Hrg. 113–18 SOLUTIONS TO THE CRISIS FACING THE U.S. POSTAL SERVICE HEARING BEFORE THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION FEBRUARY 13, 2013 Available via the World Wide Web: http://www.fdsys.gov/ Printed for the use of the Committee on Homeland Security and Governmental Affairs ( POSTAL CRISIS—2013 S. Hrg. 113–18 SOLUTIONS TO THE CRISIS FACING THE U.S. POSTAL SERVICE HEARING BEFORE THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION FEBRUARY 13, 2013 Available via the World Wide Web: http://www.fdsys.gov/ Printed for the use of the Committee on Homeland Security and Governmental Affairs ( U.S. GOVERNMENT PRINTING OFFICE 80–219 PDF WASHINGTON : 2013 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 COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS THOMAS R. CARPER, Delaware Chairman CARL LEVIN, Michigan TOM COBURN, Oklahoma MARK L. PRYOR, Arkansas JOHN MCCAIN, Arizona MARY L. LANDRIEU, Louisiana RON JOHNSON, Wisconsin CLAIRE MCCASKILL, Missouri ROB PORTMAN, Ohio JON TESTER, Montana RAND PAUL, Kentucky MARK BEGICH, Alaska MICHAEL B. ENZI, Wyoming TAMMY BALDWIN, Wisconsin KELLY AYOTTE, New Hampshire HEIDI HEITKAMP, North Dakota RICHARD J. KESSLER, Staff Director JOHN P. KILVINGTON, Deputy Staff Director BETH M. GROSSMAN, Chief Counsel LAWRENCE B. NOVEY, Chief Counsel for Governmental Affairs KATHERINE C. SYBENGA, Senior Counsel KEITH B. ASHDOWN, Minority Staff Director CHRISTOPHER J. BARKLEY, Minority Deputy Staff Director CATHARINE A. BAILEY, Minority Director of Governmental Affairs TRINA D. SHIFFMAN, Chief Clerk LAURA W. KILBRIDE, Hearing Clerk (II) C O N T E N T S Opening statements: Page Senator Carper ................................................................................................. 1 Senator Coburn ................................................................................................. 8 Senator Tester .................................................................................................. 10 Senator Ayotte .................................................................................................. 13 Senator Begich .................................................................................................. 13 Senator Enzi ..................................................................................................... 25 Senator Pryor .................................................................................................... 32 Senator Levin .................................................................................................... 35 Senator Heitkamp ............................................................................................ 51 Prepared statements: Senator Carper ................................................................................................. 61 Senator Coburn ................................................................................................. 64 WITNESSES WEDNESDAY, FEBRUARY 13, 2013 Hon. Darrell E. Issa, a Representative in Congress from the State of Cali- fornia ..................................................................................................................... 1 Hon. Elijah E. Cummings, a Representative in Congress from the State of Maryland .......................................................................................................... 4 Hon. Patrick R. Donahoe, Postmaster General and Chief Executive Officer, U.S. Postal Service ............................................................................................... 16 Hon. Eugene L. Dodaro, Comptroller General of the United States, U.S. Government Accountability Office ...................................................................... 19 Cliff Guffey, President, American Postal Workers Union .................................... 40 Jeanette P. Dwyer, President, National Rural Letter Carriers’ Association ...... 41 Robert J. Rapoza, President, National Association of Postmasters of the United States ........................................................................................................ 44 Joel Quadracci, Chairman, President, and Chief Executive Officer, Quad/ Graphics, Inc. ....................................................................................................... 46 R. Richard Geddes, Ph.D., Associate Professor, Department of Policy Analysis and Management, Cornell University ................................................................ 48 ALPHABETICAL LIST OF WITNESSES Cummings, Hon. Elijah E.: Testimony .......................................................................................................... 4 Prepared statement .......................................................................................... 67 Dodaro, Hon. Eugene L.: Testimony .......................................................................................................... 19 Prepared statement .......................................................................................... 110 Donahoe, Hon. Patrick R.: Testimony .......................................................................................................... 16 Prepared statement with attachments ........................................................... 69 Dwyer, Jeanette P.: Testimony .......................................................................................................... 41 Prepared statement .......................................................................................... 148 Geddes, R. Richard, Ph.D.: Testimony .......................................................................................................... 48 Prepared statement .......................................................................................... 169 Guffey, Cliff: Testimony .......................................................................................................... 40 Prepared statement with attachments ........................................................... 127 (III) IV Page Issa, Hon. Darrell E.: Testimony .......................................................................................................... 1 Prepared statement .......................................................................................... 65 Quadracci, Joel: Testimony .......................................................................................................... 46 Prepared statement .......................................................................................... 163 Rapoza, Robert J.: Testimony .......................................................................................................... 44 Prepared statement .......................................................................................... 155 APPENDIX Additional statements for the Record: Hamilton Davison, President and Executive Director, American Catalog Mail- ers Association, with an attachment .................................................................. 179 Donna Harman, President and CEO, American Forest and Paper Association, Inc. ......................................................................................................................... 185 Benjamin Y. Cooper and Arthur B. Sackler, Co-Managers, Coalition for a 21st Century Postal Service, with attachments ................................................ 188 Fredric V. Rolando, President, National Association of Letter Carriers, with attachments .......................................................................................................... 193 Joseph A. Beaudoin, President, National Active and Retired Federal Employ- ees Association ..................................................................................................... 236 National League of Postmasters ............................................................................. 243 Steven Mitzel, Senior Vice President and General Manager, Valassis Shared Mail, Valassis Communications, Inc. ................................................................. 248 Responses to post-hearing questions for the Record: Mr. Donahoe ...................................................................................................... 253 Mr. Dodaro ........................................................................................................ 275 Mr. Guffey ......................................................................................................... 289 Ms. Dwyer ......................................................................................................... 293 Mr. Rapoza ........................................................................................................ 295 SOLUTIONS TO THE CRISIS FACING THE U.S. POSTAL SERVICE WEDNESDAY, FEBRUARY 13, 2012 U.S. SENATE, COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS, Washington, DC. The Committee met, pursuant to notice, at 10:07 a.m., in room SD–342, Dirksen Senate Office Building, Hon. Thomas R. Carper presiding. Present: Senators Carper, Levin, Pryor, Tester, Begich, Baldwin, Heitkamp, Coburn, Enzi, and Ayotte. OPENING STATEMENT OF CHAIRMAN CARPER Chairman CARPER. Dr. Coburn and I are happy to welcome our guests this morning. I have a