Va. Rep. Gerry Connolly Offers Proposal To Help The US Postal Service Battle Deficit

WASHINGTON - The U.S. Postal Service needs to cut $20 billion out of its budget.

In December, David Williams, Vice President of Postal Operations, delivered the bad news.

"The fact of the matter is our network is too big. We have more capacity than we can afford," he explained.

The Postal Service is seeking approval to close 261 processing centers, eliminate Saturday delivery, next day delivery for first class mail, and cut 28,000 - most through retirements.

"We're being presented with false choices," said Rep. Gerry Connolly (D – Virginia).

Connolly believes Congress should roll back its mandate, imposed in 2006, that requires USPS to pre-pay 100 percent of its anticipated retirement costs.

"No other federal entity is required to pre-fund at 100 percent," he said. "The Government Accountability Office says that costs an extra $5 billion a year."

It’s a start, but USPS losses are expected to be $10 to $14 billion a year as consumers use more and more electronic delivery services.

Connolly, with support from some Democratic and Republican colleagues, wants to give the service more options to raise revenue.

"Use, for example, the postal vehicle fleet, which is huge, for lots of other things and get paid for them," Connolly said.

Like weather or traffic monitoring. Or let retailers set up shop inside post offices.

"So if Starbucks wants to pay the Postal Service to open up a branch in a post office, why not? Why not let them?" Connolly said.

Connolly’s bill would also have the postal vehicle fleet converted to electric vehicles and allow wine and beer shipments from licensed wineries or breweries.

The Congressman says it is vital to preserve affordable delivery for medicine and goods, and to rural communities.

Postmaster General Donohoe said while he appreciates Congress' help, he needs the ability to downsize as any business would.

The concern is that if the remedies don't go far enough, USPS could still need taxpayer money to keep it from going under.