Kevin R. Kosar
Analyst in American National Government
In January 2011, news media reported the U.S. Postal Service (USPS) may close 2,000 post offices. This announcement comes approximately 18 months after a previous USPS announcement suggesting 3,105 post office branches and stations might be closed. However, the number of branches and stations increased from 4,851 to 4,862 between the end of FY2008 and the end of FY2010.
This report provides (1) information on the 2011 and 2009 post office closure announcements; (2) historical data on the number of post offices and other retail postal facilities; (3) an explanation of the legal authorities relevant to retail postal facility closures; (4) a review of the retail postal facility closure processes, including data on public appeals of closures, and recent legislation that has proposed alterations to the processes; and (5) a concluding discussion that suggests observations and possible issues for Congress.
In common parlance, “post office” is used to refer to a wide variety of facilities operated by the USPS. In administrative practice, the USPS differentiates among several categories of postal facilities. At the end of FY2010, the USPS had 35,633 retail postal facilities, including post offices, post office branches and stations, community post offices, and contract postal units. This is 17.3% fewer than existed in 1970 when the USPS was established as an independent establishment of the executive branch.
The USPS has cited financial duress as a reason for its proposed closure of post offices. The USPS has not indicated how many employees would lose their positions. Most postal employees are protected from layoffs by collective bargaining agreements.
By law, the USPS does not rely on appropriations to fund its operations. It must support itself through the sales of postal services. Congress has given the USPS considerable discretion to decide how many post offices to erect and where to place them. The USPS also is obliged to provide the public with adequate access to postal services.
Both federal law and the USPS’s rules prescribe a post office closure process. The USPS must notify the affected public and hold a 60-day comment period prior to closing a post office. Should the USPS decide to close a post office, the public has 30 days to appeal the decision to the Postal Regulatory Commission (PRC). Between FY2001 and FY2010, 26 of the approximately 799 post office closures were appealed to the PRC. The USPS uses an expedited version of this process to close post office branches, stations, and community post offices. Recently the USPS issued proposed rules that would alter this process.
Federal law requires the USPS to arrange its delivery and service network to most efficiently serve the public. However, the proposed closures may raise a number of issues, including public participation in the closure process, the effects on postal workers, and the possible effects of closures on communities. Congress may wish to consider a variety of measures to address these possible issues.
Date of Report: April 15, 2011
Number of Pages: 24
Order Number: R40719
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Analyst in American National Government
In January 2011, news media reported the U.S. Postal Service (USPS) may close 2,000 post offices. This announcement comes approximately 18 months after a previous USPS announcement suggesting 3,105 post office branches and stations might be closed. However, the number of branches and stations increased from 4,851 to 4,862 between the end of FY2008 and the end of FY2010.
This report provides (1) information on the 2011 and 2009 post office closure announcements; (2) historical data on the number of post offices and other retail postal facilities; (3) an explanation of the legal authorities relevant to retail postal facility closures; (4) a review of the retail postal facility closure processes, including data on public appeals of closures, and recent legislation that has proposed alterations to the processes; and (5) a concluding discussion that suggests observations and possible issues for Congress.
In common parlance, “post office” is used to refer to a wide variety of facilities operated by the USPS. In administrative practice, the USPS differentiates among several categories of postal facilities. At the end of FY2010, the USPS had 35,633 retail postal facilities, including post offices, post office branches and stations, community post offices, and contract postal units. This is 17.3% fewer than existed in 1970 when the USPS was established as an independent establishment of the executive branch.
The USPS has cited financial duress as a reason for its proposed closure of post offices. The USPS has not indicated how many employees would lose their positions. Most postal employees are protected from layoffs by collective bargaining agreements.
By law, the USPS does not rely on appropriations to fund its operations. It must support itself through the sales of postal services. Congress has given the USPS considerable discretion to decide how many post offices to erect and where to place them. The USPS also is obliged to provide the public with adequate access to postal services.
Both federal law and the USPS’s rules prescribe a post office closure process. The USPS must notify the affected public and hold a 60-day comment period prior to closing a post office. Should the USPS decide to close a post office, the public has 30 days to appeal the decision to the Postal Regulatory Commission (PRC). Between FY2001 and FY2010, 26 of the approximately 799 post office closures were appealed to the PRC. The USPS uses an expedited version of this process to close post office branches, stations, and community post offices. Recently the USPS issued proposed rules that would alter this process.
Federal law requires the USPS to arrange its delivery and service network to most efficiently serve the public. However, the proposed closures may raise a number of issues, including public participation in the closure process, the effects on postal workers, and the possible effects of closures on communities. Congress may wish to consider a variety of measures to address these possible issues.
Date of Report: April 15, 2011
Number of Pages: 24
Order Number: R40719
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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