League of Postmasters Tell Senate Committee That Closing Post Offices Is Not a Serious Cost Savings Measure

Nat League of Postmasters

May 17, 2011 – LEAGUE President Mark Strong testified before the Senate Committee on Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security. Mark joined the Postmaster General Pat Donahoe and five other panelists to give testimony on the financial condition of the post office as well as addressing Senator Carper’s bill as well as the Collins bill.

Included in Mark’s comments was testimony on the overfunding of the pension funds as well as the prefunding of the retiree health benefits being at the source of the Postal Services financial condition. During his oral testimony Mark told the Senate Committee that “no business of any type, in any part of the country, could afford to pay a 5 Billion dollar supplemental annual income tax that its competitors do not pay, and remain viable”.

Marks remarks also covered the issue of closing of small post offices. Small office closings are one of those cost savings measures that are popular to some mid-level postal officials because they can look good with the impression that they are driving large cost out of the system. He further mentioned that Post Offices and Postmasters..…are the glue the binds rural America together. Something some urbanites have a hard time understanding but it is the truth, not rhetoric and not exaggerated.

Jack Jameson
Executive Vice President

Click to view May 17, 2011 Senate Committee written testimony (PDF)

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