Presidential Commission on the United States Postal Service Recommends Change
July 16, 2003
The Presidential Commission on the U.S. Postal Service on July 16, 2003, issued a number of preliminary recommendations on the future of mail service in the U.S. According to the Commission Co-Chairs, the USPS should not be privatized but rather, should receive more flexibility to change rates and be governed by a corporate-style board of directors. The recommendations include:
- The USPS Board of Governors should be redefined to a private-sector-like postal board that would include directors selected based on business acumen and other experience necessary to manage an enterprise of the Postal Service's size and significance. While terms would be limited to three years with renewals allowed, postal board members would be forced to retire once they reach age 70.
- The new board should start with a clean slate – compensation changed – and the appointment process changed. The board of directors and senior postal service management would be given greater flexibility to manage without the limits imposed by statutory constraints. Limits on capital spending would be repealed.
- The Postal Rate Commission (PRC) should be transformed into a Postal Regulatory Board with the responsibility to protect the public interest and promote public confidence in the fairness and transparency of postal operations.
- The PRC should replace the existing rate-setting process with an incentive-based rate-setting methodology in which the Postal Regulatory Board establishes base-line rates and rate ceilings for non-competitive products and services; reviews rate requests for non-competitive products and services that exceed established rate ceilings; and ensures that rates for competitive products and services are not cross-subsidized by revenue generated by non-competitive products and services.
The business model subcommittee also recommended that the USPS limit its activities to collecting, sorting and delivering mail; maintain its mail monopoly and its sole access to customer mailboxes; and be required to comply with Securities and Exchange Commission regulations. Additionally, it suggested that a commission be established to oversee post office closings similar to the system used to close unnecessary military bases. Once closings are recommended, they would become final unless Congress disapproved of them in their entirety within 45 days.
The private sector partnership subcommittee recommended that USPS functions, which can be performed better and at lower cost by the private sector, should be outsourced. The subcommittee also urged the agency to develop additional private-sector partnerships to better serve the consumer and expand access to postal products and services beyond the traditional post office.
To access the full report of the Co-Chairs’ final recommendations to the Commission, click here.
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