Congress should enact meaningful postal reform

The next time you walk into a post office, you'll notice that first-class stamps have gone up by 3 cents to 49 cents. In fact, the costs of mailing anything through the U.S. Postal Service (USPS) will be increasing. Late last year, the USPS requested the rate hike to make up for the financial difficulties it has been experiencing.

The Postal Service's difficulties are the result of a cost structure that doesn't reflect the realities of today's challenging marketplace. It is clear that without substantial reforms, the Postal Service's ability to fund itself by postage alone may not be viable in the long term.

The constant threat of insolvency is obviously troubling for the Postal Service, but it is even more troubling for the American economy overall. Although the USPS is financially challenged, it is a $65 billion business that supports a private-sector economy worth more than $1 trillion, employing 8.4 million private-sector workers, nearly 200,000 of whom live and work in Wisconsin. From a logger in Crandon to a papermaker in Appleton to a worker at one of our Quad/Graphics printing facilities, this supply chain relies on an efficient and stable Postal Service.

The commercial mailing industry depends heavily on the Postal Service to deliver the magazines, catalogs, direct mail marketing and other such products to customers. Quad/Graphics' customers alone paid more than $4 billion in postage in 2012, and postage now has become the single largest expense for the mailing community, exceeding 50% of the costs of producing a piece of mail — more than both the costs of paper and the actual printing.

Unfortunately, congressional efforts to reform the cost structure of the Postal Service have not yet passed, and, therefore, the USPS requested and received approval from the Postal Regulatory Commission to increase 2014 postage prices above the rate of inflation. The 5.9% increase includes the annual Consumer Price Index increase of 1.6% plus an additional emergency — or exigent — increase of 4.3%.

While the Postal Service wanted the exigent increase to be permanent, the commission determined that the increase would be phased out after roughly two years. However, this week, the U.S. Senate Committee on Homeland Security and Government Affairs is considering legislation that would overrule the commission and make the 4.3% exigent rate increase permanent, creating a new, higher baseline for all future rate increases. Further, the committee is considering allowing the USPS to raise postal rates above the cost of inflation, which could lead to larger price hikes for customers who use its services.

The Postal Service's financial challenges cannot be overcome by price increases alone. Congress must act swiftly to put the Postal Service on the path to financial stability and long-term sustainability. This requires enacting meaningful postal reform legislation that drives innovation, reforms health care costs and creates a Postal Service that reflects the needs of the 21st century.

Ensuring the viability of the Postal Service should not be a partisan issue. Congress has the ability to not only save a proud American institution but also support and promote a vibrant private sector.

Recently, I hosted U.S. Sen. Tammy Baldwin at our headquarters in Sussex to show her our printing operation in action. During the tour, we discussed the impact that unreasonable rate increases will have on paper, printing and mailing industries. It is critical that these industries are supported in order to protect the nearly 200,000 jobs in Wisconsin that depend on an efficient and affordable Postal Service.

Baldwin is working with the mailers to enact legislation that would provide an affordable rate structure that promotes the use of mail, protects current employment and helps to create an opportunity to grow jobs throughout the country and in particular here in Wisconsin. This week, she will offer an amendment to maintain predictable and affordable postage rates that do not penalize Postal Service customers.

It is my hope that U.S. senators will work together to support her amendment and promote economic opportunity for hardworking families across the country and in Wisconsin. This issue deserves bipartisan support and must be successful.