Congress may offer USPS a path out
The Postal Service really, really, really hates to lower its rates. Try as they might, the PRC has failed to get the Postal Service to end the exigent “surcharge” and knock that extra 4.3% off the rates. Invariably, the Postal Service takes it to court, argues that someone forgot to carry the seven in their calculations, and the exigent surcharge lives on. For the record, the USPS has never acknowledged that exigent rates
are a surcharge - it's just postage rates to them. The United States Postal Service has not, does not, will not lower its rates. I admire the optimistic spirit of those who say they will.
The latest extension of the surcharge is supposed to run out in the spring of 2016, whereupon the Postal Service will have no choice but to lower their rates - right???
But wait! Congress has a plan –
iPOST: Improving Postal Operations, Service & Transparency Act of 2015. This is a plan developed by Senator Tom Carper of Delaware, who is a very influential senator when it comes to postal matters. Plus, the name of the plan starts with a lower case “i”, so it has to be good.
The key provisions of iPOST:
- Eliminates all of those pesky outstanding payments to prefund retirement accounts until the all current members of congress have died of old age and it’s not their problem anymore, including forgiving past payments not made;
- Creates a new Postal Service Health Benefits Program (PSHBP), theoretically reducing costs and protecting taxpayers and postal retirees;
- Makes the exigent surcharge permanent, and freezes rates at their current exigent-y level until January 1, 2018, after which rates will be controlled by a dreamy new rate system to be designed by the Postal Regulatory Commission;
- Pauses the closing of any postal processing plants for 2 years, and post offices for 5 years;
- Allows the Postal Service to ship beer, wine, and booze, and install “Wheel of Fortune” slot machines in the lobby of all postal facilities. OK, that last bit may not be correct – well, the slot machines at least. The beer, wine, and booze are for real, along with other new “non-postal products and services.” They may include offering state and local government services. Maybe you can get married by a window clerk;
- Increases transparency of Postal Service delivery results through a monstrous new bureaucracy that is “user friendly.”
Now remember, this is just a proposal from a Democratic Delaware senator. Will it pass as proposed? HAHAHAHAHAHA!!! Possibly not, but certain provisions may in some kind of emergency legislation that lets the Postal Service keep their exigent rates because they, as mentioned before, really, really, really,
really hate to lower their rates. They will probably agree to not close so many facilities in return. Oh, and the beer thing. That will probably make it through too. C’mon – it’s beer.
My prediction: Don’t spend that postage reduction money just yet. The Postal Service now has a path to avoid a rate reduction – they’ll find a way to follow it.