Postal service lacking key funding

WASHINGTON, April 3 (UPI) -- A U.S. Senator charged Thursday that the Bush administration is not funding United States Postal Service programs intended to improve detection of chemical or biological agents, possibly putting workers and the public at risk in the event of a terrorist bio-attack.

"The Postal Service submitted a budget request to Congress that includes $779 million for emergency preparedness activities. This funding, however, was not included in the president's budget," said Richard C. Shelby, R-Al.

The Senate Appropriations Subcommittee on Transportation, Treasury, and General Government held a hearing Thursday morning to address financial struggles and security issues facing the United States Postal Service.

Postmaster General John E. Potter, who testified before the subcommittee, said the Postal Service needs additional funding to continue testing new equipment needed to detect future threats.

Congress provided $762 million in emergency funding in 2002. During the hearing Potter outlined how the 2002 funding was used for detection equipment and other measures.

But Potter said that in the president's 2005 budget "no funding is recommended for the Postal Service's efforts to improve safety and security of the nation's mail system."

The total funding for the Postal Service in the administration's 2005 budget is just over $61.7 million. This money is to be used for free service for the blind and overseas mail. The Office of Management and Budget did not respond to inquiries to confirm before this story went to press.

In his written statement Potter said, "We understand that funding for homeland security needs must be a priority." But he added that, given the past use of mail to deliver toxic chemicals, the Postal Service should also be considered for additional security funding. The funding is needed to continue research and development of new security technologies, Potter said.

The lack of funding for emergency preparedness is only one of the financial challenges facing the Postal Service. "The current business model of the Postal Service is outdated and is not economically viable in the 21st century," said Shelby, the chairman of the subcommittee.

Since 1982 the Postal Service has operated mostly without taxpayer money. But they still rely on government reimbursements for lost revenue from federal price regulations, according to Jim Quirk, public relations representative of the United States Postal Service.

Congress agreed to reimburse the Postal Service $29 million per year through 2035 to cover these costs, Quirk said. For the first time since the plan began the 2005 budget request does not include this reimbursement, Potter said.

The Revenue Forgone Reform Act passed by Congress in 1993 ensured free postage for the blind and on ballots from overseas, Shelby said. The President's budget request is $14.2 million less than the Postal Service's request of $75.9 million, Potter said in his written statement.

The decreased federal funding comes at a time when the Postal Service is already struggling with lost revenue caused by a reduced earnings from first class mail.

Advances in Internet technologies and the use of e-mail by businesses, have drastically reduced mail delivered by the Postal Service. The majority of revenues are from first class mail, which fell by more than 3 billion letters in 2003, according to Potter's written statement.

Kristen Krause, a media representative for FedEx said, "With the advent of e-mail we've seen the same thing. We've experienced a drop in overnight express letters."

Shelby congratulated the Postal Service for "streamlining the work force by 10 percent over the last five years, without layoffs." But Shelby told the Postal Service they must continue to reduce costs to get closer to those of their private competitors.

The post office has eased some of its financial burden by increasing efficiency "We are doing more - and doing it better - with less," Potter said. Changing delivery routes is one way the Postal Service is becoming more efficient. A decrease in the volume of mail has allowed carriers to include more houses on their routes, Potter said.

Still the Postal Service incurs additional costs when delivering to rural communities in every part of the country, Potter said. The Postal Service has 2,500 post offices that serve communities of less than 200 people, Potter said. This is a financial strain private competitors avoid.

Krause agreed the Post Service is the only carrier that is required to deliver to places where it's not profitable.

Sen. Patty Murray D-Wa., said financial concerns should not lead the Postal Service to stop Saturday deliveries or reduce service to rural communities. These "alternatives are not acceptable to retirees waiting for Social Security checks or medication," Murray said.

Potter agreed delivering to every address should remain a priority for the Postal Service.

"We are committed to universal service and we'll provide service to every American wherever they are," Potter said.