From the Alliance of Non-profit Mailers:
As of this writing, it appears legislation to provide relief for the Postal Service's health benefit liability obligation could move in the House of Representatives as early as next Tuesday, September 15. Indications are that H.R. 22 will be amended to provide a one-year fix to the payment obligation---instead of owing $5.4 billion on September 30 the Postal Service will instead pay $1.4 billion for Fiscal Year 2009.
Although H.R. 22 has 339 cosponsors, it hasn't moved because the Congressional Budget Office says it "scores" to the tune of several billion dollars. Their rationale is that relief for the obligation would provide the Postal Service a disincentive to cut costs. With the relief being trimmed back to Fiscal Year 2009 only and providing the relief at the end of the fiscal year, no disincentive apparently would occur. Hence, we understand this new legislative approach does not score and the House can move the bill.
This is great news for the mailing community but we're not out of the woods yet. Should the House pass H.R. 22, it then will go to the Senate for consideration. Although the scoring resolution also will help in the Senate, there are Senators that don't want to provide financial relief without requiring other changes. That sentiment is strong among key Senators, as evidenced by the oversight committee consideration of S. 1507.
The Alliance supports House passage of an amended H.R. 22 that would provide $4 billion of emergency relief for the Postal Service. We look forward to working with the Senate to ensure necessary cash flow assistance is provided to the Postal Service before September 30. Although this assistance is critically important, we believe that major structural change is also needed in the months ahead. Enactment of the emergency relief legislation will not change that fact. The Alliance will continue to work with the House and Senate toward that end.
Although H.R. 22 has 339 cosponsors, it hasn't moved because the Congressional Budget Office says it "scores" to the tune of several billion dollars. Their rationale is that relief for the obligation would provide the Postal Service a disincentive to cut costs. With the relief being trimmed back to Fiscal Year 2009 only and providing the relief at the end of the fiscal year, no disincentive apparently would occur. Hence, we understand this new legislative approach does not score and the House can move the bill.
This is great news for the mailing community but we're not out of the woods yet. Should the House pass H.R. 22, it then will go to the Senate for consideration. Although the scoring resolution also will help in the Senate, there are Senators that don't want to provide financial relief without requiring other changes. That sentiment is strong among key Senators, as evidenced by the oversight committee consideration of S. 1507.
The Alliance supports House passage of an amended H.R. 22 that would provide $4 billion of emergency relief for the Postal Service. We look forward to working with the Senate to ensure necessary cash flow assistance is provided to the Postal Service before September 30. Although this assistance is critically important, we believe that major structural change is also needed in the months ahead. Enactment of the emergency relief legislation will not change that fact. The Alliance will continue to work with the House and Senate toward that end.
