Today, U.S. Representative Blake Farenthold (TX-27), Chairman of the House Oversight Subcommittee on the Federal Workforce, the Postal Service, and the Census, participated in a House Oversight Committee hearing looking into the options to bring the Postal Service back from the brink of financial collapse. Testifying at today's hearing were the Chairman and Vice Chairman of the USPS Board of Governors, the Postmaster General, Mr. Patrick Donahoe, and the head of the Government Accountability Office (GAO), Mr. Gene Dodaro.
"Today's hearing is about ways the Postal Service can modernize now, and work harder and smarter for the future. While I'm a strong proponent of the benefits of the Internet, the loss of business to e-mail and electronic bill payments is a real problem for the Postal Service. We need an infrastructure in this country for moving matter, not just bits of data," Rep. Farenthold said in his opening statement.
"For the USPS, it's not just about cutting costs, but rather finding innovative solutions that will bring the USPS back from the brink of financial collapse, and make it strong for the future," Farenthold continued.
The USPS attributes a lot of their financial problems to their mandatory prefunding of retiree benefits, but even without prefunding, they would still be losing approximately $5 billion per year.
During the questioning portion of the hearing, Rep. Farenthold asked the head of the GAO, Mr. Gene Dodaro if the USPS was treated as a private company, would they be close to bankruptcy? Dodaro affirmatively responded, "They would be teetering" close to it.
"My fear as a government watchdog, and as a taxpayer is that without reform, the American people are going to be left footing the bill for a taxpayer bailout, and that's the last thing we need right now."