COLUMBUS, Ohio, March 8 /PRNewswire/ -- Included in a nationwide freeze on
Postal Service new facility construction or major repair projects are
10 projects in Ohio.  These projects, scheduled for fiscal year 2001, but not
yet under contract, are now on hold for the foreseeable future. (See list
below of facilities affected).
    The Postal Service released a nationwide list today of all projects
affected by a nationwide moratorium on capital spending. The spending freeze
was requested by the Postal Service Board of Governors in response to the
organization's current financial situation.
    According to the postal governors, "The Postal Service is facing a
potential loss of $2 billion to $3 billion this fiscal year, reflecting the
fact that the organization's costs are rising at a rate exceeding mail volume
and revenue growth."
    The board asked postal management to take unprecedented action on
cost-control options, including an immediate freeze on capital commitments
that will affect more than 600 facility projects nationwide.
    "Management has demonstrated tremendous focus and discipline in protecting
the ability of the Postal Service to meet the mailing needs of the American
people," said Board Chairman Robert F. Rider.  "This is demonstrated by
continuing, record service levels and significant increases in productivity.
Regrettably, our call for an additional rate increase, following so soon after
the last one, reflects the fact that the 30-year-old statutory model that
governs the Postal Service is in need of change to protect universal service
at affordable rates."
    Among the fiscal challenges faced by the Postal Service are wage rate
increases that exceed the rate of inflation, escalating fuel costs, changes in
the type of mail being processed, a communications marketplace marked by
increased competition, and forecasts calling for the diversion of some
First-Class Mail to electronic alternatives.  Employee compensation accounts
for 76 percent of Postal Service costs. The law governing postal operations
provides neither a mechanism to control wage rates nor to adjust postage rates
quickly in response to market changes.
    "Universal mail service is at risk without statutory reform of the laws
governing the Postal Service," warned the Postal Service Board of Governors.
Universal service is the regular delivery of mail to every address across the
country -- from the biggest city to the smallest village -- at uniform and
affordable rates.  Universal service is a national priority, called for by
Congress since the founding of the nation.
    The following post offices are affected:

    Bolivar                              44612    OH
    Coshocton (land purchase)            43812    OH
    Glouster                             45732    OH
    Martin                               43445    OH
    Nova                                 44859    OH
    Piketon                              45661    OH
    South Salem                          45681    OH
    Thompson                             44086    OH
    Van Buren                            45889    OH
    Wakefield                            45687    OH

Link to this page: