The Jan. 14 editorial âSpecial interestsâ deliveryâ quoted extensively from outgoing Postmaster General Patrick R. Donahoeâs speech this month at the National Press Club.
Drawing on Mr. Donahoeâs criticism of the mailing industry, postal unions and lawmakers, the editorial said interest groupsâ âresistance to changeâ blocks postal reform. Thus, the editorial argued, the main obstacle to progress is political. Thatâs right, but not in the way the editorial meant.
Hereâs something Mr. Donahoe said that wasnât included. âIâm very pleased to say that our last fiscal year [2014] was our best of the past six years.â He noted the $1.4 billion operating profit and added, âWeâve also accumulated $6 billion in cash, which gives us some flexibility to make long overdue investments.â
How did this occur at an agency the editorial called âfinancially distressedâ? Short answer: Business is booming. An improving economy has boosted letter revenue, while package revenue is skyrocketing with online shopping.
Letâs turn to politics. In 2006, lawmakers mandated that the U.S. Postal Service do something no other public or private entity is required to do: pre-fund future retiree health benefits. That annual $5.6 billion charge is the red ink.
Politicians can fix this artificial financial crisis by addressing what Donahoe called, âMy favorite example of an absurd mandate.â
Timothy OâMalley, Washington
The writer is executive vice president of the National Association of Letter Carriers.
via Not so distressed at the Postal Service – The Washington Post.