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NNA applauds passage of HR 22, The United States Postal Service Financial Relief Act of 2009

Approval of HR 22 by the House of Representatives, which permits the U.S. Postal Service to pay for retiree health benefits from an existing trust fund, will extend welcome relief to the postal system, National Newspaper Association President John W. Stevenson, publisher of The Randolph Leader, Roanoke, AL, said this week.

The bill passed the House today by a vote of 388 to 32. A companion bill, S 1507, awaits action by the Senate.

Stevenson said NNA’s Congressional Action Team had worked hard during the August Congressional recess to explain the need for HR 22. The Postal Service faces unprecedented financial pressure from declining mail volumes. It is tasked with paying more than $5 billion a year into a trust fund for future retiree health benefits, while simultaneously paying the cost of the benefits for existing retirees. No other government agency is required to prepay for its benefits on such an accelerated schedule.

“In a year when the Postal Service expects to lose nearly $7 billion, Congressional action to lift some of this accelerated payment burden is urgently needed,” Stevenson said. “The financial losses have already led Postmaster General John E. Potter to call for elimination of Saturday mail service, which NNA fervently hopes to avoid. We believe Congress should stand up for universal mail service and provide Potter with some tools to avoid collapse of the system, and we also hope USPS can recognize that community newspapers depend heavily upon it for our primary distribution.”

NNA Postal Committee Chairman Max Heath, postal consultant to Landmark Community Newspapers, Inc., and others, said he has come to believe that some of the Postal Service’s losses really stem from the acts of Congress.

“I think Congress put too heavy a burden on the postal system when it enacted the prepayment schedule,” Heath said. He has written and lectured on the Postal Service’s problems and will be addressing the topic during a Sept 26 workshop during NNA’s Annual Convention in Mobile, AL.  His column, “Postal Tips” in NNA’s newspaper, Publishers’ Auxiliary, explains why he believes Congress has been part of the problem.

“We are now turning our attention once again to the Senate,” Heath said. “It must vote on this legislation by the end of this month so the Postal Service can see some immediate financial relief before the beginning of its next fiscal year, Oct. 1.”

Heath said NNA has begun a special alert service for member newspapers with Saturday publications in the mail to help them keep abreast of the threats to Saturday delivery and to enable them to discuss their concerns with their members of Congress. Interested publishers should contact NNAWashington@nna.org to be added to the list.