Congressional Budget Office Analysis of Senate postal reform bill

January 27, 2012 by
Filed under: postal, postal news, postal reform, usps 

SUMMARY

S. 1789 would change the laws that govern the operation of the United States Postal Service (USPS). Major provisions of the bill would:

 Transfer more than $11 billion in surplus retirement contributions from the Civil Service Retirement and Disability Fund (CSRDF) to the Postal Service Fund;

 Change the payments that the Postal Service is required to make to the Postal Service Retiree Health Benefits Fund (PSRHBF);

 Permit the Postal Service to reduce mail delivery from six days per week to five;

 Authorize the Postal Service to offer employees credit for additional years of service as an incentive to retire; and

 Reduce payments to most federal workers receiving benefits under the Federal Employees’ Compensation Act (FECA) and reform the administration of that act. In addition, other provisions of S. 1789 would aim to help the Postal Service reduce its costs and increase its revenues.

CBO estimates that enacting the bill would result in off-budget savings of $25.6 billion over the 2012-2022 period and on-budget costs totaling about $31.9 billion. (USPS cash flows are recorded in the federal budget in the Postal Service Fund and are classified as off-budget, while the cash flows of the PSRHBF, CSRDF, and the FECA account are on-budget.)

Combining those effects, CBO estimates that the net cost to the unified budget of enacting S. 1789 would be $6.3 billion over the 2012-2022 period. All of those effects reflect changes in direct spending. In addition, we estimate that enacting S. 1789 would decrease revenues by $15 million over the 2012-2015 period. Pay-as-you-go procedures apply because enacting the legislation would increase on-budget direct spending and decrease
revenues.

S. 1789 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.

ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of S. 1789 is shown in Table 1. The costs of this legislation fall within budget functions 370 (commerce and housing credit) and 600 (income security).

BASIS OF ESTIMATE
For the purposes of this estimate, CBO assumes that S. 1789 will be enacted early in calendar year 2012. The bill would affect outlays of the Postal Service Fund, which is off-budget, and of the PSRHBF, CSRDF, and FECA accounts—all of which are on-budget. CBO estimates that the net cost to the unified budget would total $6.3 billion over the 2012-2022 period. In addition, we estimate that enacting the bill would decrease revenues by $15 million over the 2012-2015 period (with no impact on revenues after 2015).

Congressional Budget Office Analysis Of Postal Reform Bill

Comments

6 Comments on Congressional Budget Office Analysis of Senate postal reform bill

  1. DON on Fri, 27th Jan 2012 3:30 pm
  2. they reduce all the cost they want, what really needs done is to get rid of bad management fill these positions will good credible people

  3. joe watusi on Sat, 28th Jan 2012 4:35 pm
  4. Cliff Guffey

    What is this?, The Postal Unions telling Congress not to help the US Post Office,
    it is the Unions dictating to Congress, yet Congress listens not to those they serve.
    The Bill S- 1789 in the United States Senate, was to help to salvage what is left of the US Post Office, and offer Early Retirements to workers, so as to avoid a Reduction in Force and layoffs, the NALC, APWU, and the Mail handlers Unions have basically doomed any legislation to keep the Postal Office solvent,the bottom line is Union dues for the Bigwigs in these Unions.

    Call Your Senators:
    202-224-3121
    (Capitol Switchboard)

    Tell them you Support
    S. 1789 as it is currently written.

  5. Rob Strunk APWU on Sun, 29th Jan 2012 7:55 am
  6. Cliff Guffey

    What is this?, The Postal Unions telling Congress not to help the US Post Office,
    it is the Unions dictating to Congress, yet Congress listens not to those they serve.
    The Bill S- 1789 in the United States Senate, was to help to salvage what is left of the US Post Office, and offer Early Retirements to workers, so as to avoid a Reduction in Force and layoffs, the NALC, APWU, and the Mail handlers Unions have basically doomed any legislation to keep the Post Office solvent, the bottom line is Union dues for the Bigwigs in these Unions.

    Call Your Senators:
    202-224-3121
    (Capitol Switchboard)

    Tell them you Support
    S. 1789 as it is currently written.

  7. NO MORE DELAYS/SINKING SHIP on Sun, 29th Jan 2012 10:32 am
  8. JOE WATUSI IS RIGHT! GET THE F*** OUT OF THE WAY OF MY EARLY OUT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I AM UNDER FERS AND WILL NEVER BE ABLE TO GET OUT IF MORE DELAYS!! RIGHT NOW H.R. 3813 IN CONGRESS WILL TAKE AWAY ABOUT HALF OF MY FERS RETIREMENT BEGINNING IN 2013!!!!!!!!!!!!!!!!! THEN I WILL NOT BE ABLE TO AFFORD TO GET THE F*** OUT OF THIS SINKING SHIP!!!!!!!!!!!!!!!

  9. APWU on Sun, 29th Jan 2012 2:53 pm
  10. We need the bill now, the Unions are dooming all who wish to leave, call now tell them we need it now, to write another bill?, it will take years, then PMG Donahoe will do the RIF and layoffs in March and VER will be history!

    The Unions have stopped this bill to ensure no VER or buyouts, they want layoffs and RIF, to ensure NALC Rolando and APWU Guffey can live like Kings.

    What is this?, The Postal Unions telling Congress not to help the US Post Office,
    it is the Unions dictating to Congress, yet Congress listens not to those they serve.
    The Bill S- 1789 in the United States Senate, was to help to salvage what is left of the US Post Office, and offer Early Retirements to workers, so as to avoid a Reduction in Force and layoffs, the NALC, APWU, and the Mail handlers Unions have basically doomed any legislation to keep the Post Office solvent, the bottom line is Union dues for the Bigwigs in these Unions.

    Call Your Senators:
    202-224-3121
    (Capitol Switchboard)

    Tell them you Support
    S. 1789 as it is currently written.

  11. joe watusi on Thu, 2nd Feb 2012 5:49 am
  12. What is this?, The Postal Unions telling Congress not to help the US Post Office,
    it is the Unions dictating to Congress, yet Congress listens not to those they serve.
    The Bill S- 1789 in the United States Senate, was to help to salvage what is left of the US Post Office, and offer Early Retirements to workers, so as to avoid a Reduction in Force and layoffs, the NALC, APWU, and the Mail handlers Unions have basically doomed any legislation to keep the Post Office solvent, the bottom line is Union dues for the Bigwigs in these Unions.
    The Craft Workers not management should be offered the Voluntary Early Retirements, and soon, and not the Reduction In Force nor the layoffs, better an Incentive than R.I.F. Or Layoffs.

    APWU & NALC  
    Call Your Senators:    
    202-224-3121    
    (Capitol Switchboard)    
    [Click here for direct #s]    
    Tell them you Support    
    S. 1789 as it is currently written  
    Cut what is there and paste this or something else to your Senators.
    Today, 8:45:07 AM
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