POSTAL REFORM UPDATE

1
POSTAL REFORM UPDATE

• Bruce Moyer
• Legislative Counsel
• NAPS National Convention
• Kansas City August, 2004

2
NAPS Position

• Strong support for Postal Reform
• Mail is key part of the economy and nations
  communication system
• Affordable universal service is at risk
• Legislative reforms essential Congressional
  action this session
• Alternatives
• Significant taxpayer bailout
• Huge postal rate increases

3
What We Accomplished at LTS 2004 and Beyond

• Educated House Members and Senators about need
  for postal reform
• Built base for favorable House and Senate
  committee action
• NAPS participation in postal employee and mailer
  coalition

4
Now We Await Floor Action

• House Committee Approval May 12
• Government Reform Committee HR 4341
• Unanimous approval
• Senate Committee Approval June 2
• Governmental Affairs Committee S. 2468
• Unanimous approval

5
Postal Reform Bills Would

• Modernize rate regulation
• Grant USPS broad authority to set prices for
  competitive products
• Express Mail, Priority Mail, Outbound
  International Mail and Parcel Post
• Set prices for market dominant products through
  price cap index
• Single-piece first-class letters and cards,
  periodicals, etc.

6
Postal Reform Bills

• Require USPS financial transparency
• Replace Postal Rate Commission with more powerful
  Postal Regulatory Commission
• Eliminate the escrow requirement
• Return military retirement to Treasury

7
Key Unresolved Issues

• Administration opposition to transfer of military
  obligation
• Budget impact of escrow elimination
• Price cap indices
• Exigency clause on price caps
• UPS language and single-piece parcels

8
Additional Challenges

• Little time remains before adjournment
• Election year dynamics
• Budget costs
• 9/11 intelligence issues preempt
• No postal crisis

9
Whats Next ?

• Possible floor action - probably House
• But final action in 2004 unlikely
• Continued pressure, unaffected by election
  outcome, for reform in 2005
• Reform bills reintroduced early 2005
• Continued NAPS support
• Importance of SPAC and LTS

10
Why Reform Will Happen (Eventually)

• Greater progress this year than before
• Committee approvals first time in 30 yrs.
• Next year Congressional postal leaders remain in
  key posts
• Postal problems will remain/worsen
• Alternatives
• Significant taxpayer bailout
• Huge postal rate increases