Given the Postal Service's projected $2-$3 billion deficit this year, it is crucial that Congress examine the actions of the Service which affect each and every American. I hope this hearing will assure Hawaii's consumers and businesses that Congress is taking their concerns seriously.
Last week's decision by the Postal Board of Governors to modify the 2000 rate increase has ignited a new round of debate. Some believe raising rates may put the Postal Service in a death spiral. What we do know is that rate increases alone will not fix the serious cash flow and debt problems facing the Postal Service. A good indicator of the seriousness of the situation is that the Postal Service has been reported to be preparing for yet another rate increase filing this summer. I am interested in learning from the Board whether this report is true and learning from management exactly how the Service plans to make up its possible $2-$3 billion projected loss.
The U.S. mail is a basic and fundamental public service. Hawaii's postal patrons and those of other states are entitled to reliable and efficient mail service at a fair and reasonable cost. With a dedicated workforce of over 800,000 employees, it is the largest federal civilian employer and operates more postal facilities than the number of McDonalds, Wal-Marts, Blockbuster Videos and Starbucks, combined. This infrastructure fuels the private mailing industry that generates $155 billion nationwide annually and employs 6.2 million people.
It is essential that an organization the size of the Postal Service be governed by short and long-term financial goals that support its core mission – providing universal mail service to all Americans at affordable prices. Because the Service has appropriately sounded the alarm over declining volume and decreasing revenue, I am pleased to have the Comptroller General with us. By placing the Postal Service on the list of high-risk federal programs, Mr. Walker has spotlighted the serious financial and operational problems facing the Service.
The Postal Service has received a lot of attention in the last several months after announcing a freeze on new construction projects, studying the elimination of Saturday mail deliveries, and raising rates. While I support reviewing all options and believe it is prudent, I want to make it clear that before Congress grants the Postal Service greater flexibility, we should understand why the Service is facing a $2-3 billion projected loss, and what can be done differently.
I wish to invite my colleagues to join the newly formed Congressional Postal Caucus, on which I serve as the vice chairman. Congress should shoulder some of the responsibilities. I am confident that by offering a forum to educate and brief members of Congress on postal matters and concerns, we will be better prepared to work with all stakeholders in finding solutions to our common concerns. I look forward to reviewing the testimony presented at this hearing.
