Alaska’s bypass mail subsidy is being targeted by a California lawmaker looking to trim costs and generate more revenue for the financially ailing U.S. Postal Service. Republican Congressman Darrell Issa the chairman of the House committee on Oversight and Government Reform is a primary sponsor of legislation called the Postal Reform Act of 2011. Within the legislation, section 408 would require the state of Alaska to reimburse the Postal Service for the cost of bypass mail. Congressman Issa was not available for comment today but Alaska district Postal Service spokesman Ernie Swanson says the subsidy costs USPS at least $70 million a year.

“That’s the amount that we lose basically on it. It undoubtedly costs us more than that, I know the representative was citing a number of about a hundred million dollars and that may be close to the total cost that it is to the postal service,” Swanson said.

via Alaska News Nightly: September 23, 2011 | alaskapublic.org.

The Senator claims that “Alaska’s mail service is more complicated than the majority of systems nationwide”, which is true- the state enjoys a subsidized air freight system called “Bypass Mail”, which allows remote communities to ship in things like groceries for far less than it would cost in a free market system. (Yes, many fiercely individualistic Alaskans claim they can’t get by without help from a federal agency!) It seems the Senator, and the small air carriers who make a profit providing the service fear losing the special treatment they’ve received if they have to call someone in Denver when there’s a problem. Here’s the press release issued by Murkowski’s office:

WASHINGTON, D.C. – Senator Lisa Murkowski today sent a letter to Postmaster General Patrick Donahoe, warning him the impending restructuring and relocation of Alaska’s Western Area Distribution Networks office to Denver without a transition period is short-sighted. “Alaska’s mail service is more complicated than the majority of systems nationwide,” said Murkowski. “I understand the United States Postal Service needs to rethink everything to keep its costs under control, but this position has a steep learning curve.”

The United States Postal Service plans to shutter the Western Area Distribution Network office in Anchorage and transfer those duties and responsibilities to its Denver office. The Network Operations Specialist, Steven Deaton, who has run this office is retiring after twenty-five years of service – taking with him an extensive understanding of Alaska’s unique mail transportation environment and the complexity of federal laws that regulate how mail is moved in Alaska. The USPS plan does not include a hand-off or phasing-in plan for the new Denver specialist.

“I am extremely concerned to learn that there does not appear to be any transition or training plan for transferring this knowledge and experience to the Denver operation,” Murkowski continued. “Placing the responsibility for intra-Alaska mail and bypass mail service in the hands of untrained personnel two thousand miles and two time zones away without a clear sense of our Alaska’s routes and challenges may help the Postal Service’s bottom line but will impact our vast state’s economy and connectedness.”

Senator Murkowski’s letter (attached) encourages the United States Postal Service to engage in a two-to-three month transition period in order to give the new director a more robust sense of the Alaska postal system’s unique challenges – and track record.

Murkowski letter

Couple moving to Minnesota sends all belongings via Postal Service