Sunday, September 11, 2011
Friday, September 9, 2011
U.S. Postal Service: Actions Needed to Stave off Financial Insolvency
By the end of this fiscal year--in less than one month--the U.S. Postal Service (USPS) projects that it will incur a $9 billion loss; reach its $15 billion borrowing limit; not make its $5.5 billion retiree health benefits payment; and thus, become insolvent. USPS recently summarized this situation as the equivalent of facing Chapter 11 bankruptcy. In August 2011, USPS outlined new proposals to address the crisis. USPS seeks legislation to remove itself from the federal health benefit program and sponsor its own program; change pension benefits for new employees; and eliminate the layoff provisions it negotiated with its unions in collective bargaining to accelerate its delivery, processing, and retail network and workforce downsizing. Other USPS proposals, such as moving to 5-day delivery, and pending legislation include additional options for consideration. This statement discusses (1) updated information on USPS's financial crisis and (2) GAO's review and analysis of proposals to address this crisis, including USPS's new proposals, and options in current legislation. The testimony is based primarily on GAO's review of pending legislation, past and ongoing work related to postal issues, as well as USPS's recent financial results and GAO's discussions with senior postal officials regarding USPS's recent proposals. GAO has reported that action by Congress and USPS is urgently needed to restore USPS's financial viability. GAO provided a draft statement to USPS for comments and did not receive any suggested changes.
USPS has experienced a cumulative net loss of nearly $20 billion over the last 5 fiscal years, including an $8.5 billion loss in 2010, and a net loss of $5.7 billion in the first 9 months of fiscal year 2011. USPS does not now have--nor does it expect to have--sufficient revenue to cover its costs without legislative changes. To conserve cash, USPS discontinued making its employer's contribution for the defined-benefit portion of the Federal Employees Retirement System (FERS) in June 2011, which it estimated would reduce its costs by about $800 million this fiscal year. USPS has said that mail volume decline has outpaced even its most pessimistic forecasts. USPS urgently needs to restructure its networks and workforce as its financial condition and outlook have reached a crisis level. A variety of proposals have been made to address USPS's financial crisis. These proposals affect USPS cost savings, postal rates, customer convenience, pension benefits for new employees, employee health benefits, collective bargaining agreements, and delivery and retail services. GAO has identified key issues needing consideration in determining the merits of these proposals. Examples of specific proposals and key considerations include: (1) USPS proposal to sponsor its own health benefit plan: USPS expects to save costs by increasing employee contribution rates, fully utilizing Medicare benefits, and administering its plan more efficiently than OPM. However, it is not clear whether USPS can achieve planned cost savings and what the implications are for the federal budget, as USPS has requested about $42 billion in retiree health benefit assets be transferred from Treasury to a USPS Fund. (2) USPS proposal to seek reimbursement of its $6.9 billion FERS surplus: Reimbursing the entire surplus all at once is a risk as the current FERS surplus is an estimate that could change as economic or demographic assumptions change. The President's Fiscal Year 2012 Budget Request proposed amortizing the reimbursement over 30 years, which would be consistent with the approach taken for any deficits. (3) USPS proposal on workforce optimization: USPS expects to reduce costs by closing about 300 mail processing plants and 12,000 retail facilities; reducing service; and eliminating layoff protections in collective bargaining agreements so that it can reduce its total workforce by about 125,000 career employees by 2015. This proposal accelerates the pace of USPS actions in this area, but it is not clear how USPS will address public resistance to facility closures that could lengthen the timeframes for implementation; employee resistance to making legislative changes to layoff protections; and potential loss of customers if service declines or costs increase. Little time remains to prevent USPS---the largest federal civilian employer---from insolvency. The stark reality is that USPS's business model is broken. The decline in mail volumes is continuing. The gap between revenues and expenses is growing. USPS cannot continue providing services at current levels without dramatic changes in its cost structure. Difficult choices must be made. Now is the time to decide USPS's future.
Obama Now Underdog for Re-election
Independent pollster and political analyst Scott Rasmussen tells Newsmax that Wednesday night’s GOP debate was “rockier” than expected for leading candidate Rick Perry, and says his stance on the Social Security issue could be the “chink in the armor” of his campaign.
But Rasmussen asserts that the Texas governor now has all the “excitement and charisma” in the Republican race and could prove difficult to beat, while leading challenger Mitt Romney is an “awkward position.”
And Rasmussen believes that President Obama would be the underdog in a head-to-head race against any of the leading GOP candidates.
Rasmussen is founder and president of Rasmussen Reports and co-founder of the sports network ESPN. He has been an independent public opinion pollster for over a decade, and most major news organizations cite his reports.
He is also the co-author of “Mad As Hell: How the Tea Party Movement Is Fundamentally Remaking Our Two-Party System.”
Read more on Newsmax.com: Rasmussen: Obama Now Underdog for Re-election
Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!
But Rasmussen asserts that the Texas governor now has all the “excitement and charisma” in the Republican race and could prove difficult to beat, while leading challenger Mitt Romney is an “awkward position.”
And Rasmussen believes that President Obama would be the underdog in a head-to-head race against any of the leading GOP candidates.
Rasmussen is founder and president of Rasmussen Reports and co-founder of the sports network ESPN. He has been an independent public opinion pollster for over a decade, and most major news organizations cite his reports.
He is also the co-author of “Mad As Hell: How the Tea Party Movement Is Fundamentally Remaking Our Two-Party System.”
Read more on Newsmax.com: Rasmussen: Obama Now Underdog for Re-election
Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!
Thursday, September 8, 2011
Wednesday, September 7, 2011
Obamateurism of the Day
Barack Obama had an excellent opportunity to put his Hope and Change promise into action this week, after having been introduced by union ally James Hoffa Jr on a Detroit stage with a call, “Let’s take these [Tea Party] sons of bitches out” and telling Obama that his army of union activists would do the job. Obama may not have heard Hoffa’s speech when it happened, but he had all day yesterday to repudiate Hoffa’s comments about going to war against Tea Party activists. That would have fulfilled his promise to change the tone in Washington and reduce the bitter partisanship — which is something that almost by definition has to start with one’s own allies. It also would have matched his speech after the shooting of Rep. Gabrielle Giffords in Arizona that called for constructive rhetoric in political debate. Hoffa might have been miffed if Obama took the opening for a “Sister Souljah” moment, but it wouldn’t have damaged Hoffa at all and could have boosted Obama with moderates.
Instead, not only did Obama fail to take the initiative to rebuke Hoffa for his own gain, the White House couldn’t pick up the golden opportunity handed to them by ABC’s Jake Tapper yesterday. Jay Carney could have distanced his boss from Hoffa’s remarks by scolding Hoffa, but instead just prattled about how the press corps wants to make “connections” between supposedly unrelated people and incidents — even though Hoffa introduced Obama at the event with the remarks in question. It’s a response akin to, “Who are you going to believe — us or your lying eyes?”
Obama could have had a real presidential moment. Instead, Obama looks clueless as to what his own promises of Hope and Change actually were, and ended up tacitly endorsing Hoffa’s remarks.http://hotair.com/archives/2011/09/07/obamateurism-of-the-day-585/
Friday, September 2, 2011
Speech Stunt Backfires on Obama After Boehner Boxes Him In
House Speaker John Boehner (R-Ohio) has asked President Obama to address a joint-session of Congress on Thursday, Sept. 8, when it wouldn't conflict with the Republican presidential debate.
Citing logistical difficulties, Boehner requested that Obama hold his jobs address, which Obama wants to deliver next Wednesday, one day later.
The Speaker's letter made no mention of the more obvious conflict: between the president's speech, and a Republican presidential debate scheduled on Wednesday night at 8 p.m. EST. That debate is the first of the post-Labor Day political season, and the first one in which Texas Gov. Rick Perry (R) is set to participate.
The response by Boehner sets up an early showdown between Obama and the Congress just returning from its August recess....
Read more: http://thehill.com/blogs/blog-briefing-room/news/179067-boehner-asks-obama-to-move-speech-to-thursday#ixzz1WnE1x3VN
Citing logistical difficulties, Boehner requested that Obama hold his jobs address, which Obama wants to deliver next Wednesday, one day later.
The Speaker's letter made no mention of the more obvious conflict: between the president's speech, and a Republican presidential debate scheduled on Wednesday night at 8 p.m. EST. That debate is the first of the post-Labor Day political season, and the first one in which Texas Gov. Rick Perry (R) is set to participate.
The response by Boehner sets up an early showdown between Obama and the Congress just returning from its August recess....
Read more: http://thehill.com/blogs/blog-briefing-room/news/179067-boehner-asks-obama-to-move-speech-to-thursday#ixzz1WnE1x3VN
Thursday, September 1, 2011
Wednesday, August 31, 2011
Obama's Uncle Charged With Drunken Driving, Held by Immigration Officials
FRAMINGHAM, Mass. – President Obama's uncle -- arrested on suspicion of drunken driving and held without bail on an immigration detainer, reportedly has had a Social Security card for the last 19 years.
The Boston Herald reported Tuesday that Oyango Obama, whose sister Zeituni Oyango was also held last year for being illegal in the United States, is being represented by the same lawyer who won Zeituni Oyango's asylum.
A spokesman for Cleveland immigration attorney Margaret Wong told the Herald that he "wouldn't know how" Onyango obtained a Social Security number.
Bailey Comment: If I were a gambling person I would bet that President Obama's Uncle will get asylum just like his Aunt did! That shows you just how screwed and screwed up America has become! Read more: http://www.foxnews.com/us/2011/08/29/obamas-uncle-charged-with-drunken-driving/#ixzz1Wb1zt6pu
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