Issa on President’s Proposed Bailout for Postal Service

Issa on President’s Proposed Bailout for Postal Service: “Not what taxpayers or the Postal Service needs”

WASHINGTON- In response to a proposal outlined by President Obama on the United States Postal Service, Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, which oversees the Postal Service, issued the following statement:

“The President’s proposal is not what taxpayers or the Postal Service needs. The President’s plan to achieve savings for the Postal Service does so by sticking taxpayers with the tab. Rather than backing an effort to seek fundamental reform, the accounting gimmicks used in the plan are a thinly veiled attempt to offset continued operating losses with a taxpayer funded bailout. The Oversight Committee will move forward and consider a separate proposal Wednesday, the Postal Reform Act, that will produce at least $10.7 billion annually in savings for the Postal Service and doesn’t stick taxpayers with the bill,” Issa said.

Facts about President Obama’s Proposal to Kick the Can down the road for the Postal Service:

  • The numbers do not add up. The Obama proposal will certainly cost taxpayers money.
  • The only proposal put forth by the President that offers clear savings for the Postal Service, without passing the burden on to taxpayers, is giving USPS authority to reduce mail delivery from six days to five days. The Issa-Ross Postal Reform Act also includes this provision.
  • The Obama proposal fakes its “savings” through an insidious budget gimmick, and must rely on fuzzy accounting in order to “save $10 billion dollars.”
  • There is no surplus to pay for the pension payment “holiday”
  • The Civil Service Retirement Disability Fund, out of which all federal employee pensions benefits are paid, is underfunded for USPS, according to the most recent estimate.
  • The President proposes taking money from one fund, Federal Employee Retirement System, even while the other fund, the Civil Service Retirement System fund, is underfunded.
  • Obama calls for “bold action” and “comprehensive reform” but proposes neither.

4 Responses to "Issa on President’s Proposed Bailout for Postal Service"

  1. .44 cents to mail a letter from california to maine,Come on! Gas Prices, Food , And all the other things that has almost double in price.Deliver your own letter from the same destination.The postal service needs a pat on the back not beat to the ground.Remember,the mail fluxuates day by day.How much free political mail is delivered,whats the cost of all that lost revenue.Sometimes we all have poor leadership or management in any job,also of money or material.Sad but true!

  2. NEWS FLASH!!!!
    Due to a reduction of common sense, Congress is being consolidated and only those locations (2 –U.S. House and Senate) are being considered for closing due to lack of production! All employees are to be laid off and excessed out of goverement service.

    Congressman Issa, look at the facts;
    ? The USPS has not received tax dollars nor have they requested any bailout.
    ? There have been 2 independent audits of the Civil Service Retirement fund and both have stated there is an over payment between $ 55 and $75 Billion.
    ? To perform the consolidation and reduction of service standards that the PMG wants are first and foremost a violation of Federal Law and the Construction, but that only applies to those who only do so when it is to there benefit.

    Stop the consolidation and work to create a better business plan for the USPS not destroying it.

  3. what taxpayer bailout, we make our own money, give us back the money you,(congress),steal.maybe you,issa, ought to start smoking some of that california grass,it just might clear your confused brain.where do you republicans get your info from?bachman?there`s a winner.

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