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                                                                                                 July 31, 2015

FY2015 U.S. Postal Service Appropriations and Budget Request


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The U.S. Postal Service (USPS) generates nearly all of its
funding-about $68 billion annually according to the
USPS's most recent financial report-by charging users of
the mail for the costs of the services it provides. Congress,
however, does provide an annual appropriation-about $70
million-to compensate the USPS for revenue it forgoes in
providing free mailing privileges to the blind and overseas
voters. In addition, the annual appropriation compensates
the USPS for debt it accumulated in the 1990s while
providing postal services at below-cost rates to nonprofit
organizations.

Congress authorized appropriations for revenue forgone in
the Revenue Forgone Reform Act of 1993 (RFRA, P.L.
103-123, Title VII). Additionally, under the Postal
Accountability and Enhancement Act (PAEA, P.L. 109-43),
funding for both the USPS Office of Inspector General
(USPSOIG) and the Postal Regulatory Commission (PRC)
must be provided out of the Postal Service Fund.

  The Postal Service Fund is a revolving fund that
  consists largely of revenues generated from the sale of
  postal products and services. (39 U.S.C. §2003)


The PAEA also requires that the USPSOIG and PRC must
submit their budget requests directly to Congress and to the
Office of Management and Budget.

The law further requires that the USPSOIG's budget be
treated as a component of the USPS's budget, while the
PRC's budget, like the budgets of other independent
regulators, is treated separately.






* For FY2015, the PRC and President requested $15.283
   million be transferred from the Postal Service Fund for
   the PRC. This would have been an increase of about $1
   million over the FY2014 enacted level of $14.152
   million.
* The FY2015 enacted appropriations provides $14.700
   million (via transfer from the Postal Service Fund) for
   the PRC. This is a $548,000 increase from the enacted
   level of $14.152 million for FY2014.



* For FY2015, the USPS and the President requested
   $70.371 million for the Postal Service Fund to
   compensate for revenue forgone in providing free and


   reduced mail. This would have been $380,000 below the
   FY2014 enacted level of $70.751 million.
   The FY2015 enacted level for the Postal Service Fund is
   $70.0 million. This is a decrease of $751,000 from the
   enacted level of $70.751 million for FY2014.


* For FY2015, the USPSOIG and the President requested
   $243.883 million be transferred from the Postal Service
   Fund for the USPSOIG. This represented an increase of
   approximately $2.4 million over the FY2014 enacted
   level of $241.468 million.
* The FY2015 enacted appropriations provides $243.883
   million (via transfer from the Postal Service Fund) for
   the USPSOIG. This is the same amount as requested in
   the President's budget, and is approximately $2.4
   million more than the FY2014 enacted level.

Table 1 presents the FY2015 request and the FY2014 and
FY2015 enacted appropriations for the USPS, PRC and
USPSOIG.

Table I. FY201 5 Budget Request and FY2014-FY201 5
Appropriations
(millions of dollars)

                        FY2014     FY2015    FY2015
       Agency           Enacted    Request   Enacted

Payment to Postal Service
Fund                    $70.751   $70.371    $70.000
(annual appropriations)
PRC                     $14.152   $15.283    $14.700
(via transfer from Postal
Service Fund)
USPSOIG                 $241.468  $243.883   $243.883
(via transfer from Postal
Service Fund)
Sources: P.L. I 13-235, Title V; The President's Budget for Fiscal Year
2015: Appendix, http://www.whitehouse.gov/omb/budget.


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