LIABILITIES OF FORMER POST OFFICE DEPARTMENT Senator MONTOYA. I am just looking at the explicit letter of the law. It is unambiguous, it is very direct and very mandatory. It says, "shall," not "may." Mr. Cox. Yes, sir, but may I only point out, and I will amplify this for the record, that section 2002 (a) (2) of the same title 39 that you are reading from does say that all liabilities attributable to the operations of the former Post Office Department shall remain liabilities of the Government of the United States. I would be very happy to insert that material for the record as you requested. INCREASED ADMINISTRATIVE COSTS Senator MONTOYA. Fine. How about the 1973 estimates for administrative costs compared with fiscal 1972 and fiscal 1971? Mr. BAILAR. Senator, the costs about which you inquired in 1971, $508,531,000. In 1972, they were $714,213,000, and in 1973, $749,460,000. Mr. BAILAR. There a number of categories, Senator. Personnel costs for within-grade salary increases are on the order of $24 million, additional costs of $30 million for new employment requirements for new programs. Senator MONTOYA. Like what? You have stated a reduction in the number of employees and now have a request for $30 million for new employment. you Mr. BAILAR. The first one that comes to mind, Senator is the training programs, about which Mr. Blaisdell commented earlier. Senator MONTOYA. The training programs have been going in Oklahoma for sometime. Mr. BAILAR. Yes, but I believe he indicated that a number of these are new programs being stepped up to help with the bulk mail system training. We also have a postal academy training institute which has grown. In addition, positions are required to provide for the bulk mail program, and a substantial increase in administration and support areas in the 176 large post offices here to decentralization and upgrading management capabilities. Senator MONTOYA. Would you give me a breakdown of the additional burdens upon this administrative fund? Mr. BAILAR. May we provide that for the record? COMPARATIVE TABLE Senator MONTOYA. Yes, and give me a comparative table of what that particular load was in the previous fiscal year and what it is now by way of increase and why. Mr. BAILAR. Yes, sir, Mr. Chairman, for 1971, 1972, and 1973? (The document follows:) ADMINISTRATIVE COSTS--FY 1971-FY 1973 Total administrative costs (obligation basis) for fiscal years 1971-1973 are as follows: 1971 - $508, 531,000 1972 $714,213,000 1973 - $749, 460,000 These are the administrative costs of Headquarters, including Research and Engineering, regional activities and the 175 largest post offices. Postal training centers are included. The major 1973 increases in this area are for personnel costs made up of $24, 566,000 for within-grade salary increases, carryover costs of 1972 pay raises, and 1973 pay costs and $39, 476,000 for workload increases. These increases are partially offset by a net decrease of $19,795,000 for other items, which is due primarily to the non-recurrence of prior year costs for Employee's Compensation benefits. The additional $30, 476,000 for workload reflects the net employment requirements for new programs, added or decreased emphasis on existing programs, and other increasing work volume, The increase reflects the following position changes: 404 additional positions for National Headquarters Administration, 130 additional positions for Regional and Intermediate Headquarters Administration, 1,856 additional positions for Post Office Administration, and one additional position for Research and Engineering Administration. Of the 404 positions required at National Headquarters, 235 are for the Postal Academy Training Institute. This program, which is 90 percent reimbursable by other Government agencies, is being expanded to six additional cities in 1973. Fifty-seven additional positions are required to provide program and technical support for implementation of the Bulk Mail System, and the remaining 112 new positions at National Headquarters will provide additional support for financial, employee relations, and customer services programs. The 130 positions increase for Regional Administration includes 100 for additional staffing requirements at regional headquarters, and 30 auditors to augment staff capability to meet the audit workload. The additional 1,856 positions for Post Office Administration reflect continuing emphasis on decentralization of management responsibilities to the 176 large offices, as well as upgrading of the technical and administrative capabilities required to assure optimum utilization of resources and to meet new program requirements primarily in the financial, supply, and support service areas. The one position increase for Research and Engineering will provide additional administrative support of the mail processing program. The ratio of operating costs to administrative costs in fiscal years 1971 1973 is DIFFERENCE IN FISCAL YEAR OF POSTAL SERVICE AND FEDERAL GOVERNMENT Senator MONTOYA. What is the difference between a Postal fiscal year and a government fiscal year? Mr. DOAK. We divide the operations of the Postal Service into 13 4-week periods. This is known as a Postal fiscal year. The difference between the Postal fiscal year and the Government fiscal year is the days covered. Senator MONTOYA. Why couldn't both coincide? Mr. DOAK. We would have to establish accruals for our payrolls, primarily, Mr. Chairman. it? Senator MONTOYA. It was on account of the payroll period, is that Mr. DOAK. That is right. Senator MONTOYA. Is this costing you more to do this? Mr. DOAK. No, sir. Senator MONTOYA. Would you explain here the $31.7 million actual cost for conversion of Postal fiscal to Government fiscal year? Mr. DOAK. It is the cost of those days, sir, from June 26 to June 30 in 1971 less the rest of the period June 27 through June 30, 1970, which is 1 day. Senator MONTOYA. What is the cost comprised of? Mr. DOAK. This is accruals in terms of the payroll during those 4 days. Senator MONTOYA. Now the 1972 estimated cost for the same purpose is $81.1 million, and for 1973 it is $32.2 million. Now why is there so much difference? Mr. DOAK. We have fewer days involved, sir. NUMBER OF DAYS IN FISCAL YEAR Senator MONTOYA. Explain the number of days involved in each of those fiscal years. Can you tell me now? Mr. DOAK. Could I provide this for the record, sir? Senator MONTOYA. Certainly. (The information follows:) The Postal Fiscal Year is comprised of 13 accounting periods of 28 days each, a total of 364 days. The Government Fiscal Year contains 365 days, except in leap year when it contains 366 days. In fiscal year 1971 there was one extra weekday, in 1972, a leap year, there were two extra weekdays, and in 1973 there was one extra Saturday. The funds associated with the conversion from Postal Fiscal Year to Government Fiscal Year are the costs incurred in these extra days. COST OF POSTAL SERVICE SCHOOLS Senator MONTOYA. What is the cost of the Postal Service Management School and the cost of the Oklahoma Postal Training Operations School and the Postal Academy Training Institute. I want you to give me the cost of construction, of buildings, and the cost of equipment for the last 3 years, 1971, 1972, and the projected cost for fiscal 1973. In addition the cost salaries and administrative costs in connection with the operation of the schools. Would you break those down? Mr. DOAK. We will provide them for the record, Mr. Chairman. (The information follows:) The courses covered in all Postal Service training are listed in the Training and Development Guide – 72, submitted separately. Individual course listings and program justification is contained in the volume. The Postmaster General's "Foreword" to the Guide is as follows: "Two of the fundamental keys to realizing career growth in any organization are proper training and development. In the Postal Service, two groups--PSMI and OPTO--operate to provide those necessary training ingredients for each employee. "By broadening your talents through training, both you and the Postal Service stand to benefit. "This should help you as an individual to acquire the knowledge necessary for advancement within the Postal Service. "And equally important, you will be better equipped to help meet the goal of providing prompt, reliable, and economical services to the American public. "Use of these training opportunities will help insure that you become a meaningful part of the challenge taking place in today's Postal Service. Your participation will bring a greater personal satisfaction and a better postal system. " As an example, programs and courses listed for long-term training in Mail Processing number 36 basic training units and 48 advanced management or technical units. A similar number of training units are available in Customer Services, Support Services and Employee Development. These programs are administered throughout the Postal Service by PSMI and OPTO. |