[Congressional Record Volume 155, Number 131 (Wednesday, September 16, 2009)]
[Extensions of Remarks]
[Page E2279]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       UNITED STATES POSTAL SERVICE FINANCIAL RELIEF ACT OF 2009

                                 ______
                                 

                               speech of

                            HON. DAN BURTON

                               of indiana

                    in the house of representatives

                      Tuesday, September 15, 2009

  Mr. BURTON of Indiana. Mr. Speaker, I am a co-sponsor of H.R. 22, the 
``United States Postal Service Financial Relief Act,'' and I urge my 
colleagues to support the bill. H.R. 22 which will allow the Postal 
Service to pay, for a temporary period of time, the health premiums for 
current postal retirees from the $32 billion heald in reserve in Postal 
Service Retiree Health Benefits Fund, rather then from general 
operating revenue.
  The Postal Service is in the midst of a revenue crisis of huge and 
historic proportions, despite its extensive efforts to reduce costs. 
This situation is due in part to the high fuel prices of last summer, 
but most due to the precipitous decline in mail volume brought about by 
the deepening recession. In comparison to mail volume and revenue 
totals in May 2008, the Postal Service reports that volume in May 2009 
declined by 19.9 percent, while revenues for the same period were 14.5 
percent below last year's figures. The Postal Service is currently on 
track to lose over $6.5 billion for Fiscal Year 2009 and the future 
looks similarly bleak.
  It is only an inflexible law that requires the Postal Service--alone 
amongst Federal agencies--to shell out billions of dollars to prefund 
retiree benefits, regardless of economic or financial conditions. The 
first step on the road to stability and recovery is to change that 
inflexible law, at least temporarily, by passing of H.R. 22.
  I doubt that H.R. 22 will solve all the Postal Service's problems--
postal management and postal employees will still have to do their part 
to find additional savings. But I am certain that without this bill the 
continued viability of the Postal Service is in serious jeopardy.
  I wish to emphasis that this bill does not eliminate the Postal 
Service's obligation to prefund retiree health benefits; the Postal 
Service will continue the annual prefunding payment of roughly $5.4. to 
$5.8 billion; H.R. 22 simply gives the Postal Service the temporary 
flexibility to make those payments from the surplus funds now held by 
the Postal Service Retiree Health Benefits Fund. In addition, since the 
Postal Service's contribution to the fund is projected to always be 
greater than the premiums flowing out, this action will in no way 
jeopardize the ability of the Trust Fund to grow to meet future needs.
  I am aware that initial estimates from the Congressional Budget 
Office suggest that this bill willl have a budgetary impact because CBO 
expects the Postal Service will reduce its agressive costcutting 
efforts if it receives relief from its retiree health obligations. I 
disagree with this conclusion. The Postal Service has agressively cut 
costs in recent years. In fact, because of the hard work of postal 
employees across the country the Postal Service is on pace to reduce 
costs by a record $5.9 billion in Fiscal Year 2009. There is no 
evidence to suggest this trend will not continue. As for the immediate 
funding for this relief, it will come from an existing pool of money, 
not appropriated funds--making this an intergovernmental transfer--with 
zero cost to the Federal Government.
  H.R. 22 has the support of over 315 Members of Congress. It is 
critical to the future survival of the United States Postal Service, 
and I strongly urge my colleagues to support the bill.

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