Postal service reforms could affect local mail

Some say letter-writing is a lost art. It’s art that might be lost or at least delayed in the mail if proposed postal service cutbacks eliminate processing centers and Saturday delivery.

The problems with the postal service are much larger than letters taking longer to arrive however. Businesses could feel the hit if Saturday delivery is halted.

The Cape Gazette, for example, could be forced to change its production schedule to ensure readers receive their newspapers on time.

U.S. Postmaster General Patrick Donahoe announced Dec. 13 that the closing of more than 250 post offices would be put off until May. No post office in Delaware was on the list, but because of a large letter-sorting center in New Castle is also on the chopping block, letters to Delaware could be delayed. If the center is closed, Delaware mail would likely be sorted in Philadelphia, but that is not definite at this time. Congress will discuss proposed postal reform again in January.

Rehoboth Beach Postmaster Rick DeWitt said problems with the postal service could affect the Cape Region, but no local offices is likely to close and ending Saturday delivery is not yet official.

If Congress does change postal regulations, Saturday mail delivery could end, but the post office will still be open for customers. If postal regulations are changed, it will take up to 60 days or more to make the adjustment, DeWitt said.

Health benefits drive problems

USPS regional spokesman Ray Daiutolo said the postal service has lost money for several years. Starting in 2006, a Congressional mandate required the postal service to prefund health benefits. The mandate, paired with the reduced use of the postal service and the economic downturn, started a downward spiral leading to the problems the service is seeing today.

The postal service ended this fiscal year with a loss of $5.5 billion. If Congress requires pre-payment of the health benefits, the deficit would double to $10.6 billion, Daiutolo said. Last year, the postal service did not make the payment and posted a loss of $8.5 billion, he said.

U.S. Senator Tom Carper has co-authored legislation aimed at reforming the postal service. He said the challenges are many, but he believes the service can continue.

“Over the past several months, Americans have realized the hard truth that the postal service is on the verge of financial collapse,” Carper said. “If we do nothing, we face a future without the valuable services the postal service provides. And if the postal service were to shut down, the impact on our economy would be dramatic.”

Daiutolo said the New Castle sorting center could be closed, along with similar facilities nationwide. In Delaware, this would mean job losses, but also that letters sent to Delaware from other states would be sorted in Philadelphia, which could slow down delivery.

Delaware has 52 post offices today, but in the early 1900s the state had more than 160 offices and branches. DeWitt said the regular progression is to be more streamlined. Many post offices have limited hours and bring in little revenue, which is why they are slated to close, DeWitt said.

Daiutolo said Congress is considering multiple strategies to stem the losses, including a reduced delivery schedule, closing or merging post offices and finding new money-making proposals.

“We have several studies going right now to ensure our long-term economic viability,” Daiutolo said. “We don’t know anything about Saturday delivery because that’s something Congress will have to approve.”

“We are just waiting to see what Congress will do. We are large enough that we shouldn’t see many changes,” DeWitt said.

The post office started losing revenue with the increase of internet and cell phone use. The 2006 law that required the postal service to prefund its retiree health benefits placed a large burden on the service, DeWitt said.

Daiutolo said businesses are part of the discussion when it comes to ending Saturday delivery. He said business leaders should plan ahead because if delivery is reduced, Saturday would likely be the day eliminated.

For more information, go to www.usps.gov.

Congressional delegation speaks on future of postal service

Sen. Tom Carper - “Although the situation is dire, it’s not hopeless. With the right tools and quick action from Congress and the administration, the postal service can reform, right-size and modernize. The time to act is now. It is my hope that Congress and the administration can come together on this plan in order to save the service before it’s too late.”

Rep. John Carney – “I am a strong supporter of helping the postal service get back on a sound financial footing while protecting the jobs of thousands in Delaware and across the country,” Carney said. “The legislation I have cosponsored in the House, H.R. 1351, goes a long way toward restoring financial stability to the USPS. Now is not the time to put Americans out of work.”

Sen. Chris Coons did not return requests for comment by press time.