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Additional Information about the Estimated Costs of the Amendment to the FY 2016 Financial Services and General Government Appropriations Bill 1 (July 13, 2015)

handle is hein.congrec/cbo2387 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Keith Hall, Director U.S. Congress Washington, DC 20515 July 13, 2015 Honorable Tom Carper Ranking Member Committee on Homeland Security and Governmental Affairs United States Senate Washington, DC 20510 Dear Senator: As you requested, the Congressional Budget Office (CBO) is providing additional information about the estimated costs of the amendment offered by Congressman Fattah to the Fiscal Year 2016 Financial Services and General Government Appropriations bill, as approved by the House Committee on Appropriations on June 17, 2015. For fiscal year 2016 the amendment would require the United States Postal Service (USPS) to comply with the service standards for first class mail and periodicals that were effective on July 1, 2012. CBO estimated that enacting the Fattah amendment would increase off-budget spending by $300 million in fiscal year 2016. In July of 2012 the Postal Service changed its delivery service standards and began one of the most comprehensive operational transformations in the agency's history. Since then USPS has closed about 150 mail processing facilities, about one third of the 460 such facilities that it operated in 2012. The Postal Service has significantly reconfigured its mail delivery network, including modifying employee schedules and redesigning transportation systems. To attempt to comply with the amendment USPS would need to at least partly reverse those changes by adding work hours, reopening facilities that have been closed or sold, and replacing equipment it no longer owns. Because the amendment would be effective only for 2016, we expect the USPS would return in 2017 to its plans to reduce its operational costs.

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