Ball State's Postal Service and central mailing office might be able to weather proposed industry changes, but local branches are still waiting to see how Congress will handle the service's steady decline in revenue.
A hybrid between a governmental agency and private company, the Postal Service isn't able to declare bankruptcy. Instead, it has to wait to see if Congress will provide some sort of bail out.
The local chapter of the National Association of Letter Carriers will participate in a nationwide appeal to congressional leaders today, asking them to reconsider the 2006 mandate for a future retiree health care benefits program that has cost the company several billion dollars.
The Office of Personnel Management believes the Postal Service has overpaid between $50 and $80 billion on the program, according to an article by the New York Times.
Curt Cary, president of Muncie's NALC chapter, said the group will be rallying at U.S. Rep. Mike Pence's office from 4 to 6 p.m. to make the point that a retiree health care benefits program isn't necessary, and the money that has already been contributed to the fund could be used instead to buy new vehicles and equipment for the Postal Service.
"The fact of the matter is the Postal Service is just fine the way it is if it weren't for these payments," Cary said.
Cary said he'll present a petition on Wednesday with signatures from people at Tuesday's rally.
"The thing about Mr. Pence is he keeps his cards pretty close to his chest," Cary said. "This is an attempt to influence Mr. Pence in a large way."
Declines in Postal Service revenue spawn from the opportunities for communication and billing online. Some say it started in 1971 when the United States Postal Service was first recognized as an independent entity with federal oversight and an official monopoly.
The retiree health care benefits program was established in 2006, and Cary said the demands of this program are too high for the Postal Service to cover due to its decline in service.
Mary Dando, communication specialist for the Greater Indiana District Postal Service, said business for first class mail has decreased 25 percent in the past five years.
"That's huge," she said. "That's our bread and butter. We're running out of money, unless Congress pulls through for us."
Letter mail is what funds the Postal Service, she said. It doesn't receive tax revenue. It's only income is from selling stamps and other mailing services.
On campus, business has declined too. Mailing Services Manager Jerry Ault said the office processes about 3.6 million pieces of first class mail, down from 8 million in 1998-1999.
"It's a steady decline, and we've lost positions because of it," he said. "I can tell you we've lost three positions. Our staff is just almost half of what it was."
The postal operations at Ball State run a five-days-a-week delivery system, so they don't expect changes in hours of operation or personnel, said Mark Watters, director of Telephone and Postal Services.
"The volume of the incoming mail from the USPS is definitely decreasing with the movement to electronic communications and online services," he said in an email. "The BSU community and local customers are big advocates as to keeping a USPS presence on campus."
Dando said Muncie is among several other cities in Indiana that are under investigation for consolidation. On Sept. 15, a press release was issued saying that Muncie might consolidate its services to Indianapolis.
The Postal Record, a monthly publication for NALC, mentions six bills that have been proposed by Congress regarding the Postal Service's financial problems. It supports three of the bills — one that supports a continued six-day mail delivery service, one that offers immediate support for USPS's defaults on the retiree health benefits payments, and one that offers new strategies for increasing revenue.
President Barack Obama offered another solution earlier this week that supports a five-day delivery schedule. Current mandates don't allow the post office to raise rates more than the amount of inflation.
In 1971, the Postal Service was set up on break even basis, Cary said, meaning there's not necessarily a need to make a profit.
"That was OK," he said, "The company thought it could do it. Then the recession came — the first one. We're about to enter another one it seems like."
The Postal Service isn't a private corporation; it's a government entity.
"It's a weird animal," he said, "and it worked for years — right into the 21st century."
MARG: Bills that would address the Postal Service's financial situation and NALC's views on the bills:
H.R. 1351: U.S. Postal Service's Pension Obligation Recalculation and Restoration Act of 2011
- NALC supports
H.R. 1262: Reform the Postal Service for the 21st Century Act
- NALC supports
H.R. 2309: Postal Reform Act of 2011
- NALC does not support
S. 1010: Postal Operations Sustainment and Transformation Act of 2011
- NALC does not support at this time
S. 353: U.S. Postal Service Improvements Act of 2011
- NALC does not support at this time
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