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The Us Postal Service's Uncertain Financial Outlook, Parts I and Ii

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The Us Postal Service's Uncertain Financial Outlook, Parts I and Ii THE U.S. POSTAL SERVICE’S UNCERTAIN FINANCIAL OUTLOOK, PARTS I AND II HEARINGS BEFORE THE COMMITTEE ON GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTH CONGRESS FIRST SESSION APRIL 4, AND MAY 16, 2001 Serial No. 107–10 Printed for the use of the Committee on Government Reform ( Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform U.S. GOVERNMENT PRINTING OFFICE 75–418 PDF WASHINGTON : 2001 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) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-MAY-2000 10:11 Jan 10, 2002 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\DOCS\75418.TXT HGOVREF1 PsN: HGOVREF1 COMMITTEE ON GOVERNMENT REFORM DAN BURTON, Indiana, Chairman BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, California CONSTANCE A. MORELLA, Maryland TOM LANTOS, California CHRISTOPHER SHAYS, Connecticut MAJOR R. OWENS, New York ILEANA ROS-LEHTINEN, Florida EDOLPHUS TOWNS, New York JOHN M. MCHUGH, New York PAUL E. KANJORSKI, Pennsylvania STEPHEN HORN, California PATSY T. MINK, Hawaii JOHN L. MICA, Florida CAROLYN B. MALONEY, New York THOMAS M. DAVIS, Virginia ELEANOR HOLMES NORTON, Washington, MARK E. SOUDER, Indiana DC JOE SCARBOROUGH, Florida ELIJAH E. CUMMINGS, Maryland STEVEN C. LATOURETTE, Ohio DENNIS J. KUCINICH, Ohio BOB BARR, Georgia ROD R. BLAGOJEVICH, Illinois DAN MILLER, Florida DANNY K. DAVIS, Illinois DOUG OSE, California JOHN F. TIERNEY, Massachusetts RON LEWIS, Kentucky JIM TURNER, Texas JO ANN DAVIS, Virginia THOMAS H. ALLEN, Maine TODD RUSSELL PLATTS, Pennsylvania JANICE D. SCHAKOWSKY, Illinois DAVE WELDON, Florida WM. LACY CLAY, Missouri CHRIS CANNON, Utah ——— ——— ADAM H. PUTNAM, Florida ——— ——— C.L. ‘‘BUTCH’’ OTTER, Idaho ——— EDWARD L. SCHROCK, Virginia BERNARD SANDERS, Vermont ——— ——— (Independent) KEVIN BINGER, Staff Director DANIEL R. MOLL, Deputy Staff Director JAMES C. WILSON, Chief Counsel ROBERT A. BRIGGS, Chief Clerk PHIL SCHILIRO, Minority Staff Director (II) VerDate 11-MAY-2000 10:11 Jan 10, 2002 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\DOCS\75418.TXT HGOVREF1 PsN: HGOVREF1 C O N T E N T S Page Hearing held on: April 4, 2001 ..................................................................................................... 1 May 16, 2001 ..................................................................................................... 187 Statement of: Fineman, S. David, vice chairman, Board of Governors, U.S. Postal Serv- ice, accompanied by Tirso Del Junco, Governor, U.S. Postal Service; Alan C. Kessler, Governor, U.S. Postal Service; Ernesta Ballard, Gov- ernor, U.S. Postal Service; and John Walsh, Governor, U.S. Postal Service ............................................................................................................ 134 Henderson, William J., Postmaster General of the U.S. Postal Service ...... 75 Quinn, William H., national president, National Postal Mail Handlers Union; Clifford Dailing, secretary-treasurer, National Rural Letter Car- riers’ Association; Vincent R. Sombrotto, president, National Associa- tion of Letter Carriers; and Moe Biller, president, American Postal Workers Union, accompanied by William Burrus, executive vice presi- dent ................................................................................................................ 298 Schroeder, Pat, president and chief executive officer, Association of Amer- ican Publishers; Jerry Cerasale, board member, Mailers Council, senior vice president, Direct Marketing Association, Inc.; John C. Campanelli, president, R.R. Donnelley Logistics; John T. Estes, executive director, Main Street Coalition for Postal Fairness; and Gene A. DeL Polito, president, Association for Postal Commerce ............................................... 211 Walker, David M., Comptroller General of the United States, General Accounting Office, accompanied by Bernard Ungar, Director, Physical Infrastructure Team, U.S. General Accounting Office ............................... 28 Letters, statements, etc., submitted for the record by: Biller, Moe, president, American Postal Workers Union, prepared state- ment of ........................................................................................................... 323 Burton, Hon. Dan, a Representative in Congress from the State of Indi- ana, prepared statements of......................................................................... 5, 194 Campanelli, John C., president, R.R. Donnelley Logistics, prepared state- ment of ........................................................................................................... 244 Cerasale, Jerry, board member, Mailers Council, senior vice president, Direct Marketing Association, Inc., prepared statement of ....................... 224 Clay, Hon. Wm. Lacy, a Representative in Congress from the State of Missouri, prepared statements of............................................................... 70, 199 Dailing, Clifford, secretary-treasurer, National Rural Letter Carriers’ As- sociation, prepared statement of .................................................................. 309 Del Polito, Gene A., president, Association for Postal Commerce, prepared statement of ................................................................................................... 272 Estes, John T., executive director, Main Street Coalition for Postal Fair- ness, prepared statement of ......................................................................... 254 Fineman, S. David, vice chairman, Board of Governors, U.S. Postal Serv- ice, prepared statement of ............................................................................ 136 Henderson, William J., Postmaster General of the U.S. Postal Service, prepared statement of ................................................................................... 77 Kucinich, Hon. Dennis J., a Representative in Congress from the State of Ohio, prepared statement of .................................................................... 350 Maloney, Hon. Carolyn B., a Representative in Congress from the State of New York, prepared statement of ........................................................... 17 Manzullo, Hon. Donald, a Representative in Congress from the State of Illinois, prepared statement of ................................................................ 161 McHugh, Hon. John M., a Representative in Congress from the State of New York, prepared statements of ........................................................ 11, 204 (III) VerDate 11-MAY-2000 10:11 Jan 10, 2002 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\DOCS\75418.TXT HGOVREF1 PsN: HGOVREF1 IV Page Letters, statements, etc., submitted for the record by—Continued Quinn, William H., national president, National Postal Mail Handlers Union, prepared statement of ...................................................................... 301 Schroeder, Pat, president and chief executive officer, Association of Amer- ican Publishers, prepared statement of ...................................................... 214 Shays, Hon. Christopher, a Representative in Congress from the State of Connecticut, prepared statement of ........................................................ 23 Sombrotto, Vincent R., president, National Association of Letter Carriers, prepared statement of ................................................................................... 315 Towns, Hon. Edolphus, a Representative in Congress from the State of New York, prepared statement of ........................................................... 158 Walker, David M., Comptroller General of the United States, General Accounting Office, prepared statement of ................................................... 31 Waxman, Hon. Henry A., a Representative in Congress from the State of California, prepared statement of ........................................................... 190 VerDate 11-MAY-2000 10:11 Jan 10, 2002 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\DOCS\75418.TXT HGOVREF1 PsN: HGOVREF1 THE U.S. POSTAL SERVICE’S UNCERTAIN FINANCIAL OUTLOOK, PART I WEDNESDAY, APRIL 4, 2001 HOUSE OF REPRESENTATIVES, COMMITTEE ON GOVERNMENT REFORM, Washington, DC. The committee met, pursuant to notice, at 10:05 a.m., in room 2154, Rayburn House Office Building, Hon. Dan Burton (chairman of the committee) presiding. Present: Representatives Burton, Gilman, Morella, Shays, McHugh, Horn, Scarborough, LaTourette, Barr, Ose, Lewis, Put- nam, Otter, Schrock, Waxman, Maloney, Norton, Cummings, Kuchinich, Davis, Turner, Allen, Schakowsky, and Clay. Staff present: Kevin Binger, staff director; Daniel R. Moll, deputy staff director; David A. Kass, deputy counsel and parliamentarian; Mark Corallo, director of communications; John Callender and Randy Kaplan, counsels; Sarah Anderson, staff assistant; Robert A. Briggs, chief clerk; Robin Butler, office manager; Michael Canty, legislative assistant; Josie Duckett, deputy communications direc- tor; John Sare, deputy chief clerk; Danleigh Halfast, assistant to chief counsel; Corinne Zaccagnini, systems administrator; Phil Schiliro, minority staff director; Phil Barnett, minority chief coun- sel; Denise Wilson, minority professional staff member; Ellen Rayner, minority chief clerk; Jean Gosa and Earley Green, minor- ity assistant clerks; and Lorran Garrison, minority staff assistant. Mr. BURTON. The Committee on Government
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