FederalDaily - April 18, 2007
GAO: Reforms Have Led to USPS Cost Savings
A series of U.S. Postal Service (USPS) reforms—including improvements to productivity and a
general workplace downsizing—have dramatically improved the USPS’ financial condition,
according to Government Accountability Office (GAO) testimony released April 17. GAO in 2001 had placed
the USPS on its high-risk list for long-term financial outlook, but key actions by both USPS and Congress
led GAO to remove the agency from the list, according to GAO. Among other things, legislation enacted
in 2003 allowed USPS to reduce its annual pension expenses and improve its financial status, GAO said.
While cost-cutting has allowed the agency to achieve record net incomes, repay debt and delay rate
increases, further hurdles lay ahead. “As the Service transitions to its new statutory framework
in an increasingly competitive environment, it will continue to face financial, operational and human
capital challenges,” according to GAO. To see more, go to: www.gao.gov/new.items/d07684t.pdf
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Lawmakers Question Wisdom of Letting FEMA Lead
Lawmakers are questioning whether the Federal Emergency Management Agency (FEMA) should be allowed
to take over as the “primary agency” responsible for coordinating post-disaster relief
efforts. Previously, it was a mission assigned to the American Red Cross (ARC). Sens. Joe Lieberman,
I-Conn., and Susan Collins, R-Maine, asked on April 17 that the Government Accountability Office (GAO)
evaluate the impact of this change, which was proposed on Feb. 21. For its part, ARC would remain a
support agency for mass care under the National Response Plan. Both FEMA and ARC were sharply criticized
for a series of shortcomings in the wake of the 2005 hurricane season. “This decision represents
a potentially significant change that will shift additional responsibility to FEMA for ensuring that
mass care is provided in the event of a major disaster in the United States,” the senators said
in a letter to GAO. FEMA has admitted that a government plan for responding to emergencies will not
be ready in time for the approaching 2007 hurricane season. To see more, go to: http://hsgac.senate.gov/index.cfm?FuseAction=PressReleases.Detail&Affiliation=C&PressRelease_id=1445&Month=4&Year=2007
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DoD Orders Spending Slowdown, Seeks Reprogramming Authority
As the war-supplemental spending bill continues to be hammered out, DoD has ordered a spending slowdown
and will seek authority to temporarily reprogram $1.6 billion from Navy and Air Force pay accounts
to the Army's operating account. As part of the effort to conserve money, the Army will immediately
slow the purchase of repair parts and other supplies, relying instead on existing inventory to keep
equipment operational. Priority will be given to repair and refurbishment of immediately needed war-fighting
equipment, while training and other non-mission critical equipment repair will be deferred, officials
said on April 16. In addition, the purchase of day-to-day supplies with government charge cards will
be restricted, non-essential travel will be postponed or canceled and shipment of equipment and supplies
will be restricted or deferred altogether—unless needed for war efforts. The Army estimates that
even with these spending restrictions and a temporary reprogramming of $1.6 billion, funds are sufficient
to keep operations running only until the end of June. To see more, go to: www.army.mil/-newsreleases/2007/04/16/2698-funding-needs-prompt-army-spending-constraints
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