Postal regulators testified Wednesday that while the U.S. Postal Service needed more flexibility in setting rates, it must exhibit greater financial transparency, according to GovExec.com.
In the past decade, the USPS has not been adequately transparent in its rate-setting process, said Postal Rate Commission Chairman George Omas, before the Senate Governmental Affairs Committee’s final hearing on postal reform that stemmed from the report from the President’s Commission on the Postal Service.
Both Sens. Susan Collins (R-ME) and Thomas Carper (D-DE) are expected to introduce postal reform bills later this month.
Omas noted that the USPS had fought requests by General Accounting Office and other groups for information regarding rate setting, adding to an overall “culture of resistance.” He added: “I do not think that private-sector confidentiality concerns should apply to a government-owned entity like the Postal Service.”
He also advocated elimination of the “adversarial, trial-type rate-setting hearings” that currently delay implementation of new rates.
But Omas said he disagreed with a recommendation from the President’s commission shifting to an after-the-fact review of rate changes. Omas said he believed a prior administrative review could be accomplished in as little as 90 days, but that such a review was necessary to avoid cumbersome retroactive rate changes.
For his part, USPS Board of Governors Chairman David Fineman said postal management should be given the flexibility to change rates within a Congressionally set cap.
Fineman said Congress was essentially striking a deal with management on rate setting, requiring greater transparency but allowing greater flexibility. Moving to a post-review of rate changes is essential to that increased flexibility, he said.
The committee also discussed potential changes to the structure of the postal regulatory agencies. The president’s commission advocated a smaller board of governors with shorter terms.
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