USPS Funding Request at Odds With Administration

Share this content:
Postmaster General John E. Potter went before Congress yesterday to argue that the postal service needs more funding from the government than what has been proposed by the Bush administration.


The USPS wants $101.2 million more than would be appropriated under the administration's proposed budget, Potter told members of the House Committee on Appropriations. The money would be used to support postage discounts and free services mandated by the government and postal security, he said.


The USPS-requested appropriations not funded by the government include:


· $51 million for security costs associated with the Biohazard Defense System, the Ventilation and Filtration System and a mail sanitization facility to be located in Washington. The administration included no money in its budget for these items.


· $29 million that the USPS says the government owes it for mandated discounts on certain classes of mail. The $29 million represents the 13th payment out of 42 payments that Congress has authorized the government to make to the postal service to fund $1.2 billion in costs incurred because of discount rates. But the administration has not included any money for the payment in its budget this year.


· $108.5 million for free services that the government requires the USPS to provide, including mail for the blind and sending absentee ballots overseas to members of the military. The administration budgeted only $87.3 million for these services.


The postal service has clashed with the administration recently over financial issues related to the Civil Service Retirement System. The USPS wants the government to fund CSRS benefits related to military service of employees -- as is the case with other government agencies -- while the administration is pushing the USPS to pay for the benefits out of rates.


The USPS also wants some of the savings from its overpayment into the CSRS system to be used to curtail rate increases. The administration wants all the money to be used to pre-fund future retiree benefits.


Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Loading links....

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here