[Congressional Record Volume 146, Number 129 (Monday, October 16, 2000)]
[Extensions of Remarks]
[Page E1798]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          MODIFYING RATES RELATING TO REDUCED RATE MAIL MATTER

                                 ______
                                 

                               speech of

                           HON. CHAKA FATTAH

                            of pennsylvania

                    in the house of representatives

                      Wednesday, October 11, 2000

  Mr. FATTAH. Mr. Speaker, as the Ranking member of the Subcommittee on 
the Postal Service, I am pleased to join Chairman McHugh in the 
consideration of S. 2686, legislation introduced in the Senate, S. 
2686, on June 7, 2000, by Senator Thad Cochran, the Chairman, and 
Senator Daniel K. Akaka, the Ranking Minority Member of the Senate 
Subcommittee on International Security Proliferation and Federal 
Services. This measure will provide much needed postage rate relief for 
nonprofit mailers and address serious shortcomings in the current 
United States Postal Service (USPS) rate case proposal that is now 
before the Postal Rate Commission (PRC).
  On Friday, October 6, the United States Senate approved passage of S. 
2686, legislation drafted by the Alliance of Nonprofit Mailers, the 
Postal Service, and others that is designed to protect preferred postal 
rates for nonprofit mailers.
  S. 2686, which will protect nonprofit or preferred mailers from 
double-digit rate increases, is identical to H.R. 4636, legislation I 
introduced on June 12, 2000. I was joined in the introduction of this 
bill by Congressman Steny H. Hoyer, Ranking Minority Member of the 
House Appropriations Subcommittee on Treasury, Postal Service and 
General Government, and Congressman Danny K. Davis and Congressman 
Major R. Owens, both members of the Subcommittee on the Postal Service. 
To date a number of members have cosponsored my bill.
  The practice of designating certain types of mail for preferred rates 
was initiated by the Congress more than 50 years ago. In 1993, deficit 
reduction legislation eliminated federal financial support for 
nonprofit mailers, but mandated that nonprofit rates be lower than 
rates for commercial mailers.
  In January of this year, the Postal Service Board of Governors 
proposed postage rate increases for all classes of mail. The USPS 
formally filed the rate request which is pending before the PRC. The 
proposed postal rate increased for all classes of mail is designed to 
raise $3.7 billion in new revenues--beginning in 2001. Under the 
current rate request, rates for nonprofits will surpass rates for 
corresponding commercial mail. The USPS attributed the increase to 
inaccurate cost data and have suggested that the ``average'' increase 
for mailers is approximately 6.4% Unfortunately, for nonprofits and 
magazine industry, the hit is double-plus the average increase.
  To its credit, the Postal Service requested and proposed legislation 
to fix the nonprofit rate anomaly. The legislative fix was drafted by 
the Alliance of Nonprofit Mailers with the assistance of the Magazine 
Publishers of America, National Federation of Nonprofits, Direct 
Marketing Association, and others. These organizations worked with the 
postal service to craft an acceptable legislative solution to the 
nonprofit rate problem in the current rate case before the PRC. You are 
all to be commended. Without the legislation, the nonprofit periodical 
preferred rate will disappear.
  How does S. 2686 correct the rate anomaly? The bill would ``lock-in'' 
the rate relationship between nonprofit and commercial Standard A and 
Periodical rates, which would prevent nonprofit mail from current and 
future ``rate shock'' by doing the following:
  Set nonprofit Periodical rates at 95% of the commercial counterpart 
rate. Excluding the advertising portion, nonprofit mailers would 
receive a 5% discount off the commercial rate.
  Set the revenue per piece for nonprofit Standard A mail to reflect a 
40% discount over the revenue per piece received by commercial Standard 
A mail.
  Set Library rates at 95% of the rates for the Special subclass of 
Standard B mail.
  Passage of the bill is necessary before the Postal Rate Commission 
completes deliberations on the current rate case.
  Mr. Speaker, before I close I would like to thank Chairman McHugh and 
his staff, Robert Taub and Heea Vazirani-Fales, for their hard work in 
ensuring a compromise on this matter, PRC Chairman Ed Gleiman for his 
efforts to keep Congress focused on fixing the problem, Neal Denton of 
the Alliance for keeping the coalition together and on track even in 
the face of last minute challenges, the Postal Service for being 
proactive and Nanci Langley, Deputy Minority Staff Director for the 
Senate Subcommittee on International Security Proliferation and Federal 
Services and Dan Blair, Senior Counsel, Senate Governmental Affairs 
Committee for all of their help and support. I must also commend and 
thank the Government Reform Committee Chairman, Congressman Dan Burton 
for keeping all the parties together for the good of the nonprofit 
community. I close by thanking the Ranking Government Reform member, 
Congressman Henry A. Waxman for his support, hard work, and 
cosponsorship of H.R. 4636, and for bringing the bill to the attention 
of the Corrections Day Group.
  And so, on behalf of local charities, hospitals, churches, educators, 
arts organizations, nonprofit publications, and a host of others 
including Girard College, the Center for Science in the Public 
Interest, the National Association of Independent Schools, and Chicago 
WILDERNESS Magazine, and the cosponsors of H.R. 4636, I ask that my 
colleagues support S. 2686 and urge its swift adoption.

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