Summer 2021 - 52

THE GCA DESK
HO RIZ O N ,
A
Change on the
IF YOU WANT IT
The Postal Service Reform Act can strengthen the USPS -
and our industry
George White
Rafe Morrissey
BY GEORGE WHITE, PRESIDENT, GREETING CARD ASSOCIATION
RAFE MORRISSEY, VICE PRESIDENT OF PUBLIC AFFAIRS,
GREETING CARD ASSOCIATION
t long last, the U.S. House of Representatives has an opportunity to
advance vitally needed postal reform legislation. In May, the House
Committee on Oversight and Reform approved H.R. 3076, The Postal Service
Reform Act. This is the first time legislation to stabilize USPS finances has
been approved by the committee and eligible for passage by Congress in
the last three years.
Chairwoman Carolyn Maloney (D-NY) is to be commended for
accomplishing what her last two predecessors have been unable (or
unwilling) to do: introduce and advance comprehensive consensus
postal reform legislation. We are appreciative that the senior Republican
on the committee, Ranking Member Jim Comer (R-KY), joined her in
this effort. Stabilizing the vital institution of the USPS and its ability to
provide universal service to the nation at least six days per week is not just
important for the greeting card industry, for which USPS delivers more
than half of all cards to their final recipient; it is truly a national priority.
The bill contains many beneficial provisions. It eliminates the
unsustainable burden to pre-fund 70 years worth of USPS retiree
healthcare expenses in 10 years that has driven unsustainable balance
sheet losses and motivated the USPS to seek higher rates and reduced
services. Instead, it would have future USPS retirees receive the Medicare
benefits, for which they have already paid through payroll taxes. It
would also endorse the USPS 10-year plan commitment to six- and
seven-day delivery for mail and packages by requiring at least six-day
delivery for mail using an integrated network. This makes permanent
the requirement that has been annually required by Congress in
appropriations legislation since 1983.
The GCA is pleased to join with Postmaster General Louis DeJoy in
supporting these essential reforms. This bill must advance to final
passage as quickly as possible, but some improvements are needed along
the way. While we are in lockstep with the USPS on these needed reforms,
we are concerned that it continues to seek excessively high rate increases,
including a possible stamp price hike this year. While the USPS's regulator
has approved a greatly expanded rate-setting authority, it did so based
52 Summer 2021 | STATIONERY TRENDS
on the huge liabilities that this bill will otherwise resolve. Furthermore,
the USPS 10-year plan projections, established several months ago, are
already proving to be incorrect: Instead of the more than $2 billion loss
projected for this fiscal year, the USPS has generated a profit of $236
million through April of this year. GCA supports a provision supported by
the entire mailing industry to require the Postal Regulatory Commission
to review the limits for rate increase once this legislation is enacted.
This bill, combined with the previously enacted COVID financing and
a potential appropriation for a new vehicle fleet, could reduce USPS
liabilities by as much as $76 billion. Having the regulator re-examine the
limit on stamp price increases is important to ensure that our customers
are not overcharged - and that high postage increases do not drive
more mail out of the system. The nickel price increase in 2019, which
represented the largest increase in USPS history, reversed a three-year
growth trend in mailed greeting cards we worked hard to achieve, and
led to a 15 percent volume decline in just one year.
Postal reform may seem like an issue far removed from the day-to-day
operations of makers, industry suppliers, and card retailers, but when
we consider that the USPS is the only viable delivery option for over
half the cards sold, the importance of affordable postage and quality
service becomes clear. In addition, greeting cards are among the most
valued content of the mail stream, and the potential for receiving such
personal mail is what keeps Americans checking their mailbox every
day, so maximizing the volume of greeting cards and other personal
correspondence in the mail is vital to USPS.
This bill is the best chance in the last decade to make a fundamental
improvement in USPS's core financial stability. Fortunately, it is easy for
anyone to express support for the bill and the needed improvements.
By texting MAIL to 52886, you can send a message of support to your
Member of Congress in just a few minutes. This is an easy way for the
greeting card community to help make sure card buyers have an
affordable and reliable delivery option to get cards to their friends and
family for many years to come. S T
Summer 2021

Table of Contents for the Digital Edition of Summer 2021
