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Congress asked to OK postal cuts - USA - Business - postal service

Congress asked to OK postal cuts

U.S. Postmaster General John E. Potter went to Capitol Hill on Thursday to seek permission to cut a day of mail delivery as the Postal Service faces the worst financial crisis in its 234-year history, and a key lawmaker said Congress may have to rethink its long-standing opposition to the idea.

Jim McElhatton | The Washington Times | Published: 08/07/2009 02:36

Although new regulatory filings show that ending Saturday delivery would not bring major savings until 2011, Sen. Thomas R. Carper, the Delaware Democrat who chairs the Senate Homeland Security and Governmental Affairs subcommittee that oversees the Postal Service, said the situation was so dire that the idea had to be considered.

"With the situation the Postal Service is facing now, it's time for us to re-evaluate this prohibition," Mr. Carper said.

One day after announcing a $2.4 billion quarterly loss and continued sharp declines in mail volume, Mr. Potter told lawmakers that the elimination of Saturday mail is "an absolute requirement for the long-term viability of the nation's postal system."

Postal officials project more than $7 billion in losses by the time the fiscal year ends Sept. 30. They blame the losses on the recession and increased use of e-mail and online bill payments.

Mr. Potter also appealed to lawmakers to change how the Postal Service funds retiree health benefits, but it's the elimination of Saturday mail service that has proved to be one of one of the more contentious cost savings.

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