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Postal Revamping Returned to Senders

Without a Bill Soon, a Double-Digit Rate Hike Is Likely in 2006, Advocates Say

By Christopher Lee
Washington Post Staff Writer
Tuesday, November 9, 2004; Page A25

This was supposed to be the year that long-suffering supporters of revamping the troubled U.S. Postal Service finally got a bill through Congress. Barring a legislative miracle, however, that's not going to happen.

When the lame-duck Congress convenes next week, lawmakers are expected to turn their attention to such matters as unfinished appropriations bills and reorganizing U.S. intelligence agencies. So postal officials, lawmakers and members of the mailing industry are assessing what went wrong, what went right and how to resurrect postal legislation next year in time to blunt a prospective double-digit increase in mailing rates in 2006.

Sen. Susan Collins (R-Maine) said reform is needed "to preserve a $900 billion mailing industry." (File Photo)

"In the simplest terms, the clock simply ran out," said Rep. John M. McHugh (R-N.Y.), chairman of a special House panel on postal reform and oversight. He is a leading proponent of broad changes in the Postal Service to make it more efficient and competitive.

A week of the congressional calendar was lost to former president Ronald Reagan's death and state funeral in June. Members' desire to return to their districts to campaign for reelection shaved off time in October. And the intense focus on bills to restructure intelligence agencies soaked up the legislative energy on Capitol Hill in the weeks leading up to the elections.

Still, McHugh, who has led House efforts to overhaul the Postal Service since 1995, said much more went right for postal reorganization advocates in this session than in the other eight years in which their efforts fell short. So much so that he thinks there is a good chance the new Congress will pass a bill next year.

In Sen. Susan Collins (R-Maine), chairwoman of the Senate Governmental Affairs Committee, McHugh found a partner on the Senate side who was as committed to revamping the Postal Service as he was. For the first time, committees in both the House and Senate voted -- unanimously -- to approve major postal legislation, although neither bill has come to the full floor for a vote.

In general, the legislation would grant the Postal Service, a $67 billion-a-year entity, more flexibility in the services it offers and the prices it charges for them, while continuing to guarantee delivery six days a week to every address in the United States.

Although the two bills differ in some provisions, and the White House has significant objections, McHugh said that few lawmakers consider the gaps unbridgeable and that, with more time, a compromise approach could have been worked out. What is more, President Bush greatly added to the legislative momentum this year by naming a presidential commission in late 2002 to study potential remedies for the Postal Service's bleak financial outlook under its current business model.

"That's a lot different than past years, when our coming up short was predicated more on a substantive issue or lack of will to go forward," McHugh said. "So in a very important way, we did make progress. Obviously, all of us would have liked to send a bill to the White House, but we've come a long way and we remain optimistic that with a fast start in January we can get a bill and do it in a timely fashion so that any kind of major rate increase can be forestalled."

Collins said she and Rep. Thomas M. Davis III (R-Va.), chairman of the House Government Reform Committee, recently met with White House Chief of Staff Andrew H. Card Jr. to discuss strategies for getting a bill that Bush would sign, leaving with a list of measures the administration wants incorporated into the legislation.

"It is important that we act to pass postal reform as soon as possible in order to preserve a $900 billion mailing industry that is responsible for 9 million jobs nationwide," Collins said in a statement Friday. "Without substantial reform, it is expected that we will once again see rate increases far in excess of inflation."

Ralph Moden, senior vice president of government relations for the Postal Service, said officials would have to file this spring for a 2006 rate hike large enough to cover inflation and perhaps more. It would be the first increase since 2002, when the price of a first-class stamp rose to 37 cents. Without legislative relief, "it will most likely be a double digit [percentage] increase," Moden said.

George Gould, legislative director of the National Association of Letter Carriers, which supports the legislation, said he thinks the chances for passage next year are good.

"It's good politically at this point to make the system viable," Gould said. "The administration and Congress can take credit for the Postal Service avoiding having huge rate increases and for not being able to deliver the products."

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