Romney’s VP pick Paul Ryan on the USPS

Since 1971, the U.S. Postal Service (USPS) has been a self-supporting wholly governmental entity that was designed to cover its operating expenses with revenues generated through the sales of postage and related products. However, the sharp decline in first class mail since 2006 and the loss of the associated revenues coupled with high operating expenses has left the USPS in a difficult financial position. In the first three quarters of this year, the USPS has run a deficit of $5.7 billion and is not expected to be able to make the mandatory $5.5 billion Retiree Health Benefits Fund payment by November 18, 2011. With declining revenues and increased expenses, it is imperative that Congress take action to address and reform the structural issues threatening to bankrupt this important agency.

At this point in the 112th Congress, a variety of Committee hearings, have resulted in a number of bills designed to address the financial problems facing the USPS.  Representative Darrell Issa, Chairman of the Oversight and Government Reform Committee, which is charged with oversight of the USPS, introduced H.R. 2309, Postal Reform Act of 2011, on June 23, 2011. The bill would create the Postal Service Financial Responsibility and Management Assistance Authority, which would have a broad mandate to restructure the Postal Service and reduce costs in order to bring the institution back to fiscal solvency when the Postal Service goes into default to the Federal government. The Authority will be disbanded once the United States Postal Service (USPS) meets several benchmarks that ensure financial health.

via U.S. Postal Service concerns | U.S. Congressman Paul Ryan.