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| Economy |
| A $4 billion bailout for the Postal Service? |
| 2009-09-25 |
| The House voted Thursday to freeze Medicare Part B premiums for most elderly next year, even as Democrats moved to exempt the Postal Service from having to make $4 billion in payments due next week to cover retirement health benefits for its employees. The back-to-back actions reflect a flurry of last minute multi-billion-dollar fixes, often without warning, as the government approaches the new fiscal year beginning next Thursday, Oct. 1. Democrats hope the Medicare premium freeze, which sailed through on a 406-18 vote, will defuse what would otherwise be an October surprise for health care reform -- threatened cuts in Social Security checks for millions of elderly. In the case of the Postal Service, the action closely tracks a House bill approved Sept. 15 but would allow proponents to get past the Senate now without the threat of amendments. At a meeting of House and Senate Appropriations Committee negotiators Thursday morning, the Postal Service language was incorporated into a stop-gap continuing resolution, or CR, that Congress must enact in the next week to keep the full government operations. As adopted, the postal agency, which now faces a liability of $5.4 billion due Sept. 30, would have to pay only $1.4 billion and would be allowed to effectively defer the remaining $4 billion until after 2017. "That's good news" said a Postal Service spokesman, who argued the arrangement posed no risk for the taxpayer since the retirement fund holds $32 billion at this time. Nonetheless, critics argued the $4 billion will now be added as a potential cost on the government's books given the fragile state of the Postal Service, and the whole handling of the issue is seen by many as a parliamentary sleight-of-hand. Republicans made no effort to target the postal provision but complained it had been added without warning to the otherwise non-controversial 30 day resolution. Moreover, to doubly protect their work product, the Democratic leadership for the Appropriations Committees has wrapped it into an otherwise non-controversial $4.65 billion budget bill covering the operations of the Capitol and such agencies as the Library of Congress. |
| Posted by:Fred |
| #2 |
| Posted by: SteveS 2009-09-25 18:24 |
| #1 |
| Posted by: DepotGuy 2009-09-25 12:15 |