Here’s how Politico describes yesterday’s maneuverings in the House on the USPS’s trust fund obligation. Remember that the $4 billion under discussion is NOT taxpayer money- it’s USPS revenue siphoned off by Congress under the 2006 PAEA law:

In the case of the Postal Service, the action closely tracks a House bill approved Sept. 15 but would allow proponents to get past the Senate now without the threat of amendments.

At a meeting of House and Senate Appropriations Committee negotiators Thursday morning, the Postal Service language was incorporated into a stop-gap continuing resolution, or CR, that Congress must enact in the next week to keep the full government operations. As adopted, the postal agency, which now faces a liability of $5.4 billion due Sept. 30, would have to pay only $1.4 billion and would be allowed to effectively defer the remaining $4 billion until after 2017.

“That’s good news” said a Postal Service spokesman, who argued the arrangement posed no risk for the taxpayer since the retirement fund holds $32 billion at this time. Nonetheless, critics argued the $4 billion will now be added as a potential cost on the government’s books given the fragile state of the Postal Service, and the whole handling of the issue is seen by many as a parliamentary sleight-of-hand.

Republicans made no effort to target the postal provision but complained it had been added without warning to the otherwise non-controversial 30 day resolution. Moreover, to doubly protect their work product, the Democratic leadership for the Appropriations Committees has wrapped it into an otherwise non-controversial $4.65 billion budget bill covering the operations of the Capitol and such agencies as the Library of Congress.

This legislative conference report can now be brought back to the House and Senate floor with special privileges that help avoid amendments.

House Appropriations Committee Chairman David Obey (D-Wis.) pointed to fact that Republicans had used a similar ploy with a CR three years ago when they were in power and insisted he had been upfront about the tactics in a public meeting.

Ranking Republican, Rep. Jerry Lewis of California, countered that the whole strategy was “one of the most cynical legislative maneuvers I’ve ever seen.” And Rep. Robert Aderholt (R-Ala.) said Democrats made matters worse by wrapping the spending provision into the legislative appropriations bill –taking care of Congress’s “backyard” and doing little for the rest of the nation.

On a 7-4 vote, House negotiators rejected an effort by Lewis to strike the proposed CR from the conference report on the legislative bill. But despite the cost, neither House nor Senate Republicans in the talks made any direct effort to target the Postal provision.

In truth, many had voted for the relief when a free-standing bill on the same issue passed the House 388-32 Sept. 15.

via Politico

It should come as no surprise that Fox News has the first headline announcing “Obama’s $4 Billion Taxpayer Bailout of the Postal Service”. The page has a short excerpt from, and a link to, this morning’s article from the Daily Caller. If you’ve read that article, you may recall that the author claimed that the proposed aid for the USPS, which does not involve any taxpayer money “has its critics, with some referring to it as a $4 billion taxpayer bailout of the Postal Service”. But the only expert the author actually bothered to interview said “I do not regard what’s specifically in the budget as a bailout,… I do not think that allowing the Postal Service to reschedule its payment for the retiree health benefits fund is a bailout.”

Fox News is apparently not about to let the facts get in the way of a good headline.

From WMC TV in Memphis:

Earlier this week the Government Accountability Office released its biennial list of “High Risk” federal programs, and the US Postal Service once again made the list. Here’s the section dealing with the USPS:

GAO 2011 High Risk Update: US Postal Service

The Direct Marketing Association released the following statement:

On Wednesday the Postal Regulatory Commission found that the Postal Service postage increases for market dominant classes of mail were correctly calculated within the statutory CPI price cap. Thus, those rate increases will be effective on Sunday, April 17, 2011.

The Commission, however, expressed disappointment that USPS had failed to rate postage on Standard Mail flats sufficiently to cover the costs of processing, transporting and delivering that mail. In fact, the Commission found that the new rates would increase the cross-subsidy of flat-shaped mail by Standard Mail letters. “While not unlimited, [the USPS pricing] flexibility is sufficient to allow the Postal Service to address the flats’ cost coverage issue within the rate cap. In this proceeding the Postal Service could have designed Standard Mail Flats prices to better align rates with costs and, over time, allow this product to be ‘brought to full cost coverage.’” The Commission expects this error to be rectified in future rate adjustment filings.

The Commission also criticized the Postal Service use of “unaccepted” costing methodologies when determining work-share discounts. Again, the Commission did not require any adjustments in this time shortened proceeding, but it expects the Service to refrain from such actions in future filings.

“The Commission should be focusing on market based pricing and not on what should be the abandoned cost of service pricing of the old law. The Postal Service rates for Standard Flats are market driven and those efforts should be applauded,” said DMA Senior VP Jerry Cerasale.

The Commission’s concern on both the methodology and the Standard Mail cross subsidy may also be addressed in the Commission’s Annual Compliance Review or a complaint case.

The Commission decision may be found at:
http://www.prc.gov/Docs/71/71974/Order_No_675.pdf

KANSAS CITY, Mo., Feb. 17, 2011 /PRNewswire/ — Hallmark and the U.S. Postal Service introduce PostagePaid Greetings — a line of "everyday" and seasonal cards that already include postage. Just sign, seal and send.

"In this busy world of ours, Hallmark and the Postal Service want to help make connecting with loved ones a little bit easier," said Rob Bensman, vice president of strategic alliances at Hallmark. "PostagePaid Greetings provide you with everything you need. All you have to do is add a personal message."

Hallmark Postage-Paid Greetings feature the U.S. Postal Service’s Intelligent Mail barcode on the front of the envelope. When the cards are processed at a Postal Service facility, the barcode automatically indicates to the Postal Service the postage is paid. The postage is treated like a Forever stamp, and its value will always be equal to the price of a standard First-Class stamp, regardless of when it’s mailed.

"We know card-sending is an important tradition and receiving cards is as meaningful as it ever was," said Paul Vogel, president and chief marketing/sales officer, U.S. Postal Service. "We are pleased to work with Hallmark in a way that honors this tradition while providing consumers with added convenience afforded by advanced technology."

More than 200 varieties of everyday Postage-Paid Greetings will be sold in Hallmark Gold Crown stores, Wal-Mart, Walgreens, CVS and other Hallmark distribution locations. Seasonal cards will be available starting this Easter season. Postage-Paid everyday cards can be purchased for $3.99, and seasonal cards will range in price from $2.69 to $3.99. For more information, visit www.hallmark.com.

via Hallmark and the U.S. Postal Service Launch Postage-Paid Greeting Cards — KANSAS CITY, Mo., Feb. 17, 2011 /PRNewswire/ –.

The Postal Regulatory Commission has approved the Postal Service’s planned rate increases for its market dominant products, including first class and standard (advertising) mail. There would be no increase for a one ounce first class letter, but other rates would rise an average of 1.7%. The new rates will take effect on April 17.

While finding that the rate changes were within the authority granted to the USPS by the 2006 PAEA Act, the commission was critical of some of the Postal Service’s methods of calculating worksharing discounts:

In some instances, the Postal Service calculates worksharing pass-throughs utilizing unapproved methodologies that currently are under review with the Commission. The Postal Service asserts that the methodologies it employs are superior to the established methodologies; therefore, it contends that use of the unapproved methodologies is appropriate.

The Postal Service should not use unapproved methodologies in price adjustment filings. These cases are conducted using a compressed time schedule to allow the Postal Service to quickly and efficiently adjust rates without the delays inherent in evaluating new, unreviewed analytical methodologies. The expedited process was developed with the support of the Postal Service.

PRC Chair Ruth Goldway was even more critical of the USPS, saying in a concurring opinion:

I am troubled by the Postal Service’s disregard for the regulatory procedures established and often reiterated by the Commission, particularly with regard to the reliance on an unapproved costing methodology in this case. I believe the workshare discounts that the Postal Service has proposed continue to allow for inefficiencies in mail processing. However, I concur with my colleagues that meeting the price cap requirements is of primary importance.

PRC Order_No_675.

The Postal Service’s chief accountant is leaving the agency at the end of the month, according to this “8-K” filed with the PRC:

On February 10, 2011, Vincent H. DeVito, Vice President, Controller (principal accounting officer), advised the United States Postal Service (the “Postal Service”) that he will resign his position as Vice President, Controller, effective February 28, 2011, to accept a position in the private sector.

2011 02-16 FORM 8-K.pdf.