[Senate Hearing 114-605] [From the U.S. Government Publishing Office] S. Hrg. 114-605 NOMINATIONS OF HON. ROBERT G. TAUB AND HON. MARK D. ACTON ======================================================================= HEARING before the COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION __________ NOMINATIONS OF ROBERT G. TAUB AND HON. MARK D. ACTON TO BE COMMISSIONERS, POSTAL REGULATORY COMMISSION __________ NOVEMBER 15, 2016 Available via the World Wide Web: http://www.fdsys.gov/ Printed for the use of the Committee on Homeland Security and Governmental Affairs [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] U.S. GOVERNMENT PUBLISHING OFFICE 24-801 PDF WASHINGTON : 2017 ____________________________________________________________________ For sale by the Superintendent of Documents, U.S. Government Publishing Office, Internet:bookstore.gpo.gov. Phone:toll free (866)512-1800;DC area (202)512-1800 Fax:(202) 512-2104 Mail:Stop IDCC,Washington,DC 20402-001 COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS RON JOHNSON, Wisconsin Chairman JOHN McCAIN, Arizona THOMAS R. CARPER, Delaware ROB PORTMAN, Ohio CLAIRE McCASKILL, Missouri RAND PAUL, Kentucky JON TESTER, Montana JAMES LANKFORD, Oklahoma TAMMY BALDWIN, Wisconsin MICHAEL B. ENZI, Wyoming HEIDI HEITKAMP, North Dakota KELLY AYOTTE, New Hampshire CORY A. BOOKER, New Jersey JONI ERNST, Iowa GARY C. PETERS, Michigan BEN SASSE, Nebraska Christopher R. Hixon, Staff Director Gabrielle D'Adamo Singer, Chief Counsel Jennifer L. Scheaffer, Professional Staff Member John D. Cuaderes, Director, Subcommittee on Regulatory Affairs and Federal Management Tara M. Schonoff, Professional Staff Member, Subcommittee on Regulatory Affairs and Federal Management Gabrielle A. Batkin, Minority Staff Director John P. Kilvington, Minority Deputy Staff Director John A. Kane, Minority Senior Governmental Affairs Advisor Felicia A. Hawkins, Minority U.S. Postal Service Office of the Inspector General Detailee Viola B. Stoval, Minority U.S. Postal Service Office of the Inspector General Detailee Laura W. Kilbride, Chief Clerk C O N T E N T S ------ Opening statements: Page Senator Lankford............................................. 1 Senator Carper............................................... 2 Senator Heitkamp............................................. 9 Senator Tester............................................... 11 Senator Peters............................................... 14 Prepared statement: Senator Lankford............................................. 23 Senator Carper............................................... 24 WITNESSES Tuesday, November 15, 2016 Hon. Robert G. Taub to be a Commissioner, Postal Regulatory Commission Testimony.................................................... 4 Prepared statement........................................... 28 Biographical and financial information....................... 30 Letter from the Office of Government Ethics.................. 53 Responses to pre-hearing questions........................... 56 Hon. Mark D. Acton to be a Commissioner, Postal Regulatory Commission Testimony.................................................... 5 Prepared statement........................................... 75 Biographical and financial information....................... 76 Letter from the Office of Government Ethics.................. 94 Responses to pre-hearing questions........................... 96 Prepared Statement of Senator Schumer............................ 26 Prepared Statement of Senator Gillibrand......................... 27 NOMINATIONS OF HON. ROBERT G. TAUB AND HON. MARK D. ACTON TUESDAY, NOVEMBER 15, 2016 U.S. Senate, Committee on Homeland Security and Governmental Affairs, Washington, DC. The Committee met, pursuant to notice, at 2:33 p.m., in room SD-342, Dirksen Senate Office Building, Hon. James Lankford, presiding. Present: Senators Lankford, Carper, Tester, Heitkamp, and Peters. OPENING STATEMENT OF SENATOR LANKFORD Senator Lankford. Good afternoon, everyone. Let me call this hearing before the Senate Homeland Security and Governmental Affairs Committee to order today. We are considering today the nominations of Mr. Robert Taub and Mr. Mark Acton for Commissioners of the Postal Regulatory Commission (PRC). The Postal Regulatory Commission exercises statutory and comprehensive oversight of the U.S. Postal Service (USPS). Among its responsibilities are the mandates to prevent anticompetitive practices, to promote accountability and to adjudicate complaints, set postal rates, help oversee delivery service standards, and other things. It is a busy group. It is important that each Commissioner reflects the highest standard of public service. Robert Taub is a native of Gloversville, New York. He received a bachelor's degree and M.A. in political science from American University, where he graduated with honors. Mr. Taub has a distinguished career as a public servant, including work at the Government Accountability Office (GAO) , as chief of staff to former Representative John McHugh, and as an assistant to the Secretary of the Army. He is currently serving as the Acting Chairman of the Postal Regulatory Commission. Mark Acton is a native of Louisville, Kentucky. He earned his bachelor's degree from the University of Louisville and his MBA from the University of Maryland. I assume you are watching a little football lately as well. Mr. Acton. Indeed. Senator Lankford. Yes. Mr. Acton served at the Republican National Committee for more than two decades in a variety of positions, including as staff director for the counsel's office and government relations officer. Prior to his confirmation as Commissioner at the PRC, Mr. Acton was the Special Assistant to the Chairman. Committee staff had the opportunity to interview Mr. Taub and Mr. Acton regarding their work so far at the PRC. They have thoughtfully and competently answered each question to our satisfaction. Mr. Taub and Mr. Acton, to date, the Committee has found you to be qualified for the position you have been nominated, and I look forward to speaking with you more about this. When we go through this process and get a chance to open this up for questions and when you do your opening statements, I would hope both of you would introduce your family, and that will give a chance to tell a little bit about your story and what actually brought you here. You have both served very admirably already in these type of positions, and so this should be a very straightforward conversation about what we are doing in the days ahead to be able to help the Postal Service and the many great employees that serve there. So I look forward to this ongoing conversation. With that, I recognize Senator Carper for any opening statement you might make. OPENING STATEMENT OF SENATOR CARPER Senator Carper. Thank you. Thank you, Mr. Chairman. Again, to our witnesses, to our guests, their families, and one and all, we are happy to be with all of you. Thank you for joining us today. And, Senator Heitkamp, thank you for letting me warm your seat for a little while this afternoon. I have statements of support for Chairman Taub from Senators Gillibrand and Schumer that I would like, Mr. Chairman, to ask unanimous consent be added to the record, please.\1\ --------------------------------------------------------------------------- \1\ The prepared statements from Senator Schumer and Senator Gillibrand appear in the Appendix beginning on page 26. --------------------------------------------------------------------------- Senator Lankford. Without objection. Senator Carper. I just want to thank you, Mr. Chairman, for scheduling today's hearing to consider what I believe a very important nominations to fill two Commissioner vacancies for the Postal Regulatory Commission. Both Mr. Taub and Mr. Acton's terms expired on October 14, 2016, while we were away, and they are now one month into a one-year holdover term granted to them under the law, so they must leave the Commission next October unless they are reconfirmed. It is imperative, in my view, then that we take swift action on these nominees before the end of this year due to the pending critical work on rates before the Commission. I should also note that if we do not take action on these two nominations, the PRC will eventually be left with only two Commissioners, and that would be unacceptable and create even more uncertainty for the Postal Service and its customers. It is bad enough that we have a Board of Governors that has just one slot filled out of, gosh, roughly 10, and we do not want to repeat the same mistake here with respect to the Postal Regulatory Commission. But we are considering Mr. Taub's and Mr. Acton's nominations at what is a very challenging time for the Postal Service. It is not a time, though, that is devoid of promise or potential, although to achieve that promise, that potential, we need strong leadership at the PRC if the Postal Service is going to successfully confront the challenges such as poor service performance issues and the persistent decline in First- Class Mail volume. The future also offers the Postal Service a number of promising opportunities. Some of them we are familiar with, others not. But Congress and the PRC have important work to do to help the Postal Service take full commercial advantage of its unique delivery and logistics network. There is one entity in the country that goes to every mailbox in the country, residential, business, five or six times a week. Just one, and it is the U.S. Postal Service. And there is a huge burden in doing all that, but there is also great opportunity for that. The Postal Service operates at the center of a massive printing, delivery, and logistics industry that I am told adds up to about $1.4 trillion and employs nearly 8 million people. And even as First-Class Mail loses ground to other forms of communication, the future holds promise for the Postal Service in a number of other ways. Advertising mail is still a popular--and I am reminded every time I open up my mailbox at home in Delaware--still a popular and effective option for mailers. And e-commerce and package delivery are booming, making the Postal Service a vital partner for businesses large and small. Even the Postal Service's traditional competitors rely on it to carry items the last mile to rural communities around the country. Both Mr. Taub and Mr. Acton have been invaluable resources to the Congress as we work on postal reform legislation, and their confirmation will remove uncertainty about the future of regulatory action at the Postal Service. It will also allow Congress to continue its work on postal reform with a clear sense of who will be implementing the reform in the coming years. This is Chairman Taub's second nomination, I think, by President Obama, and he has served as the Acting Chairman of the PRC since December 2014. He was first nominated and confirmed in, I think, October 2011. Is that correct? And you have demonstrated, in my view, proven leadership skills to properly address issues and concerns facing the Postal Service and staying keenly aware of the delicate balance between congressional and postal industry needs. Mr. Acton has spent 14 years at the PRC. President Bush first nominated him as a Commissioner in 2005. He was confirmed by the Senate in 2006. His second nomination as a Commissioner was by President Obama, and he was confirmed a second time by the Senate in September 2011. As a Commissioner, Mr. Acton has shown a clear understanding of key postal issues, as well as a close familiarity with the concerns of Congress and postal stakeholders. As I stated at the beginning of my remarks, Mr. Chairman, the PRC has a tremendous amount of work ahead of them in the coming weeks and months, including a required 10-year review of the postal pricing system established in our 2006 postal reform law that Senator Collins and I co-authored. We need strong PRC Commissioners to properly address the issues I expect to be raised during the course of the review, which will determine the level of service the Postal Service will offer in the future, and the prices that will be charged for that service. I believe we need to ensure that there is a quorum of PRC Commissioners in place so that the rate review can happen and proceed uninterrupted over the course of the next year. I look forward to talking with Mr. Taub and Mr. Acton today--we have spoken any number of times before, but I want to talk today about what they think can be done to address some of the ongoing challenges facing the Postal Service and to hear about the skills, the knowledge, and the experience that they would bring to the PRC. Again, Mr. Chairman, thanks for letting me join you today, and to our witnesses for their willingness to serve, to your families for your willingness to share them, and at least one of your parents who is here to say thanks for raising this kid. He turned out well. Thank you. Senator Lankford. It is the custom of this Committee to swear in all witnesses before they appear, so if you would please stand, raise your right hand. Do you swear that the testimony that you are about to give before this Committee will be the truth, the whole truth, and nothing but the truth, so help you, God? Mr. Acton. I do. Mr. Taub. I do. Senator Lankford. You may be seated. Let the record reflect the witnesses answered in the affirmative. I would like to recognize both of you, and I would remind you again we would be honored to be able to have the introduction of your family as well whenever you give your opening statement. Mr. Taub, you are first in this. TESTIMONY OF THE HONORABLE ROBERT G. TAUB,\1\ NOMINEE TO BE A COMMISSIONER, POSTAL REGULATORY COMMISSION Mr. Taub. Thank you very much. Indeed, I will start out by introducing my family. --------------------------------------------------------------------------- \1\ The prepared statement of Mr. Taub appears in the Appendix on page 28. --------------------------------------------------------------------------- My dear wife, Cynthia Taub, is here. Our twin daughters are away at college and could not be here today to witness our Constitution in action today. And my dear father, Carlson Taub, and my sister, Beth Laddin, have both traveled a distance from upstate New York to attend as well. And so all have lent me love, encouragement, and a good dose of understanding over the years. I would also like to take an opportunity to acknowledge my colleague and fellow nominee today. Commissioner Acton is a dear friend and a good colleague on the Commission with me, and I wish him well as well. And as Senator Carper indicated, last, I would like to thank my home State Senators, Senators Schumer and Gillibrand, for their statements for the record. Mr. Chairman, Ranking Member, and Members of the Committee, I want to thank you for the opportunity to be here today and for your consideration of my qualifications to be a Commissioner of the Postal Regulatory Commission for another term. When the Senate confirmed me as a Commissioner 5 years ago, I was serving as a senior executive in the Department of the Army as the principal civilian advisor to Secretary John McHugh, helping him oversee a workforce of more than 1.2 million people and manage an annual budget over $200 billion. I had arrived at the Army with Secretary McHugh, having served as his longtime chief of staff in the Congress as well as his leading staffer on postal issues within the House Oversight and Government Reform Committee. Like Secretary John McHugh, over the course of my 30 years in public service, I have worked in bipartisan fashion to develop solutions to many public policy issues, particularly the challenges confronting our Postal Service. The President designated me as head of the Commission nearly 2 years ago. During that time, the Commission has become even more efficient and effective in carrying out its mission as measured by budget savings and timeliness of the work. The Commission has achieved improvements in its employees' satisfaction and engagement, as evidenced by the Federal Employee Viewpoint Survey results. The Commission has become a more frequently sought resource for postal expertise, particularly to the Congress. If confirmed, I would welcome and hope to build upon these accomplishments to achieve further improvements in staff achievement, the timeliness and quality of work products, and the efficiency and effectiveness of agency operations. On December 20, the Commission will begin what may be its most important work in its 46-year history: a statutorily mandated ``10-year review'' of the Postal Service's price cap system, with unilateral authority to modify it or adopt an alternative system. Considering that the Postal Service's consecutive net losses since 2007 has increased its cumulative net deficit to more than $57 billion, the importance of this review cannot be overstated. The Postal Service's total liabilities exceed the total value of its assets by more than $53 billion. As I testified to the Committee in January, the Postal Service's balance sheet must be fixed. With the growing liability of retiree health benefits, the inability to borrow for needed capital investments, and the continued loss of high- margin First-Class Mail revenues, the important task of improving the financial condition of the Postal Service is daunting. I want to assure this Committee that I appear here before you today with few delusions as to the challenges that lie ahead. I believe I have a clear understanding of the serious and numerous challenges that face America's postal system. But the fact is, for all the challenges the Postal Service of the 21st Century faces, it still retains an integral role as a key cog in how American businesses conduct their affairs and how Americans all across this land communicate. The Postal Service is the one government agency that touches every American on a daily basis. It is an organization that literally serves 155 million American households and businesses on a typical day. It facilitates trillions of dollars in commerce. For 241 years, our Postal Service has provided a service that American people and American businesses alike have come and grown to expect. Universal service at a uniform price, no questions asked. Very few in this country go to his or her mailbox or his or her local post office wondering if the mail will be there. It is always there. It has always been there. But the true question, the question confronting our Nation, is: Will the mail always be there? The Postal Service is in a serious financial crisis that must be fixed. There are no easy answers, but answer we must. And I promise you, if confirmed, my first priority will be, along with this Committee, the entire Congress, the President, and my fellow Commissioners, to engage in a constant search for the discovery and implementation of solutions. I am truly honored to be considered. Thank you. Senator Lankford. Mr. Acton. TESTIMONY OF THE HONORABLE MARK D. ACTON,\1\ NOMINEE TO BE A COMMISSIONER, POSTAL REGULATORY COMMISSION Mr. Acton. Thank you, Mr. Chairman and Members of the Committee. I am honored to be with you today, and I thank you for holding this hearing to consider my nomination as a Postal Regulatory Commissioner. --------------------------------------------------------------------------- \1\ The prepared statement of Mr. Acton appears in the Appendix on page 75. --------------------------------------------------------------------------- I want to thank the President for the honor of nominating me for this appointment, and I am most grateful for the support of our Senate Majority Leader and my home State Senator, Mitch McConnell. My thanks to Committee staff for their expert guidance, and I also would like to acknowledge the support of my partner, family, and friends, some of whom are here today. I spent 4 years on staff at the Postal Rate Commission assisting the agency Chairman in administering PRC operations, and since then I have served as first a Postal Rate Commissioner and now as a Postal Regulatory Commissioner. I believe that my 14 years of postal policymaking experience affords me an informed perspective regarding the key postal issues that come before us today, as well as a great familiarity with the concerns of the postal community stakeholders at large. I am pleased to be considered for a continuing public policy role, and if confirmed, I pledge to work with this Committee to advance workable solutions that help to renew the vitality of a great American institution--the United States Postal Service. Mr. Chairman, I look forward to working with you and the other Members of this Committee, and I would be pleased to answer any questions. Senator Lankford. Thank you, Mr. Acton. I have three mandatory questions that we ask all of our nominees for all hearings, so let me ask these three, and then I am going to defer to the Ranking Member for his questions then. So these will all be ``yes'' or ``no'' questions, and I will ask both of you at the same time to be able to respond. Is there anything that you are aware of in your background that might present a conflict of interest with the duties of the office to which you have been nominated? Mr. Taub. No. Mr. Acton. No. Senator Lankford. OK. Thank you. Do you know of anything, personal or otherwise, that would in any way prevent you from fully and honorably discharging the responsibilities of the office to which you have been nominated? Mr. Taub. No. Mr. Acton. No. Senator Lankford. OK. Thank you both. Do you agree without reservation to comply with any request or summons to appear and testify before any duly constituted committee of Congress if you are confirmed? Mr. Taub. Yes, I do. Mr. Acton. Yes. Senator Lankford. Thank you both. Senator Carper. Senator Carper. Thanks, Mr. Chairman. I would like to talk about customer service for starters. We have three offices in Delaware, a little State, three counties, an office in each county, and we have in each of those offices someone who is responsible for constituent services. And we have in my Wilmington office a woman named Heather Guerke, who has been with me since I was Governor, and she is great on constituent services. One of her areas of responsibility is Internal Revenue Service (IRS). She has her hands full there. Another is the Postal Service, which for many years, frankly, was not much trouble, not much concern. Boy, that has changed. We have gotten more complaints about quality of service, lack of quality of service from so many Delawareans, mostly residential but some businesses, over the last couple of years, much more than we have ever seen before. What is the responsibility, where is the intersection between the PRC and the Postal Service with respect to quality of service for the folks that we represent? Mr. Taub. Senator, the Postal Regulatory Commission has a very important responsibility of providing transparency and accountability of the Postal Service, not only with rates and products but service. In the 2006 law that was put together, when that law was passed, the only public data that was out there about service quality was what was on single-piece First- Class Mail. Today, as we speak, nearly 10 years later, we have full transparency of data on the service performance for all market- dominant classes of mail--First-Class, periodicals, Standard Mail--and we look at that annually and report on whether those service standards are met. The Postal Service has a major problem with service performance, and the Commission earlier this year in its most recent annual compliance determination, this was the first year we found that the Postal Service did not meet any of its targets for all of First-Class Mail. Standard Mail, periodicals, flats, and First-Class Mail flats are a perennial problem and had gotten worse. So we have directed the Postal Service to do a comprehensive analysis of what we identified as potential pinch points throughout the whole process and look at what are some of the solutions there. Again, we are the regulator, not the operator. Our responsibility is to provide some sunshine and spotlight that did not exist before and exists today. And the Postal Service did come back to us just a few months ago with that report. We have had some follow-up with them, and we are making some decisions among the Commission as to what the next steps will be. So the bottom line is the information from your case work operation is not an anomaly. Service performance is not where it should be for the U.S. Postal Service. Senator Carper. All right. Thank you. Maybe a question for Mr. Acton. In a conversation we had just this week, you talked a little bit about some of the different aspects of the postal reform legislation that we have worked on in this Committee and that is being worked on in the House of Representatives. And one of the challenges the Postal Service has, as almost every employer in the country that offers health care for their pensioners has, there is a liability associated with it. Most private sector companies frankly do not acknowledge that. I guess a lot of States do not acknowledge that liability for their pensioners either. The Postal Service has a lot of pensioners, and there is a liability, and it has to be acknowledged. The question is how to pay for that, over what period of time, and to what extent should it be addressed. There is a similarity in the House legislation and the Senate legislation on that point. One of the other areas where there is some similarity, but not total, is with respect to innovation and looking--I mentioned the challenge. We have a lot of challenges at the Postal Service. We also have opportunities. I like to say in adversity lies opportunity. That is actually Albert Einstein, not me. But with respect to innovation, in our Senate legislation we created a Chief Innovation Officer within the Postal Service, where we created sort of like a commission or a board of really smart people from the private sector who are very creative and thoughtful and can think of new ways for the Postal Service to generate income by providing services that are needed. And the question I would ask you, and I will start with Mr. Acton and then Mr. Taub: To what extent should we be thinking about, after having created a Chief Information Officer, creating a board or commission of people who advise the Postal Service, should we then tie the hands of the Postal Service and say, well, you cannot really be very innovative except maybe with respect to State and local governments? Any thoughts on that, please? Let me just say that some people want to see the Postal Service, like they have in other countries, to be a bank. OK? I am not interested in seeing the Postal Service be a bank. Some people are interested in seeing the Postal Service be an insurance company. I am not interested in seeing them be an insurance company. But I would like to not tie their hands in terms of being innovative and creative and using their brand and using what is unique about them, this legacy, 200-year-old delivery network that goes to every post office box in the country, five or six times a week. What do you think in terms of innovation and the flexibility of the Postal Service to use it to innovate? Mr. Acton. Thank you, Senator Carper. The Commission has been a ripe playing field for the Postal Service to come to with innovative thought. In instances where the Postal Service is proposing certain market tests for new revenue streams, the Commission in every instance has approved the market test. And, in fact, in our last report, which we call the ``701 report,'' which is a mandate from Congress in the law for the Commission to come forth with some proposed changes in the legislation that might improve things, we talk in there about raising the thresholds of revenue involvement for market tests and extending the trial period. So I think that the Commission has demonstrated over a long period of time that we are very open to innovative thought. I do think, though, that if you are going to provide the Postal Service with that avenue to enhance the revenue situation, that you do have some regulatory involvement because it is important to remember, as I know you know, the Postal Service is a two- headed beast. It is operating in a market-dominant environment, and it is also competing in a competitive market environment. So when you talk about innovation, it is important that a regulator be involved--not an activist regulator, but a regulator who is there to ensure there is not an improper cross-subsidization between those two market arenas that compromises or distorts the competitive playing field. Senator Carper. All right. Thank you. Mr. Taub, I have just a few seconds. Anything you want to add or take away, please, quickly? Mr. Taub. I would concur with what Commissioner Acton said. Just a couple points I would amplify on. First of all, as you know, the 2006 law drew a very hard line as to the Postal Service is not allowed to get into non- postal products and services under current law. So the law would have to change if the aperture would grow. Knowing that, I do believe the Postmaster General and her team right now understand that their focus is innovating the core of the postal products. To the extent that aperture opened, I would just offer an observation. This has been a long concern of mine, which is trying to get to first principles. Why else do we have a government administration providing postal service? It is to provide universal service. But in the United States, we have never defined exactly what that means. And as we look to the Postal Service to get into other areas, it seems to me we need to have a conservation about what is it that we need and want this government administration to do to meet that universal service obligation (USO) and what is its cost. And then we could better sense what things could be added or subtracted from that equation. Senator Carper. All right. Good. Thank you so much. Thank you both. Senator Lankford. Senator Heitkamp. OPENING STATEMENT OF SENATOR HEITKAMP Senator Heitkamp. Thank you, Mr. Chairman, and thank you, Senator Carper, for opening up exactly the topic of conversation that we are having consistently on this Committee, which really is kind of putting the cart before the horse. As you said, Chairman Taub, we do not talk about service; we just talk about how we are going to run the post office without defining what we expect that service to look like and what our expectations are. Spending the first couple years on this Committee with the previous Postmaster General, I was reminded of a statement that I give often, which is you cannot fix a problem you will not admit you have. We have a problem with service, and that problem is very acute in rural areas. With the closing of service centers, the narrowing of the focus, to suggest that we are getting the same level of postal service that we did 20 years ago is incorrect. Our service is getting worse. When I sent out a ``Fix My Mail,'' opening up a portal on my Web page, 600 North Dakotans responded. Now, you think about it, we are small State. You get 600 people to volunteer concerns, that tells us that we have a very real concern. Senator McCaskill and I recently asked for a GAO report taking a look at utilization and service in rural communities. In spite of broadband, there is this idea that broadband eliminates the necessity for attention to universal service. I will tell you, the GAO report argues the other way, that rural communities are even more dependent on the Postal Service than other parts of the country. And so we are going to be myopically focused in my office, and I think for a number of members here, on what is happening with universal service in rural communities. And so I think that the Commission plays a very important role in guaranteeing improvement in service and guaranteeing universal service. And so I just want a commitment from both of you that simply making the ends meet financially, balancing all of this, will not be the sole priority if as a result of that you do not have a post office that delivers any service. So I would like comments on that, but also a commitment that you are going to be focused on universal service and what that means, especially as it relates to rural communities. Mr. Taub. Senator, you have my personal commitment. I am heart attack serious about delivery performance for the Postal Service and seeing that improve. I was born and raised in northern New York State. I served for a decade as then- Congressman John McHugh's Chief of staff. His congressional district was over 14,000 square miles, one of the largest east of the Mississippi. Some of the communities may not have had much, but what they did have was a post office. So I personally well understand the importance in these rural areas. The Postal Service has to do better, and we are on top of that. Your legislation I think acknowledges that current law only goes so far with our tools in our toolkit, and the Commission would have some additional tools under what you have proposed to take that a bit further. But I fully agree, as I said, universal service is--why else do we have a government institution providing a service that is in a competitive marketplace every day, but to provide this type of level of service to all communities? The law already says there has to be effective service to areas of the country that may not otherwise be financially viable. And so the bottom line is I am with you 110 percent on that. Senator Heitkamp. Thank you, Chairman. Mr. Acton. Mr. Acton. Thank you, Senator. I just would like to, first of all, offer my assurances that I understand there is a problem. Do I understand all the particulars of why there is a problem? No. Do I think that the Postal Service is taking ownership of the fact that they have a problem? I do think that they are doing that. We have been meeting with them on a monthly basis in our consultations. They show us the trends about what they think went wrong operationally and otherwise back in the States. And they seem to be implementing some operational adjustments and working closer with the mailers in a fashion that is making some trend toward improvement. I hope that that trend continues. They have a long way to go, particularly in rural and remote portions of the Nation. There are four of us on the Commission. There is a guy from Kentucky. There is a fellow from upstate New York, which is largely rural. We have a fellow from rural Missouri. And we have someone from Hawaii, which is pretty remote in America. So remote and rural American concerns are always at the forefront of a lot of the postal policymaking that goes on at the Commission, and I think that you can examine our record and see that we often point to the disparate effect of certain operational changes that may result, particularly where the Postal Service is most important, which is in rural and remote America. Then the thing I would close with is your point about making finances better does not necessarily result in the sort of improvements we need, and I agree with that. But I also feel that there is a nexus between what is happening with the degradation of the Postal Service's performance particularly in rural and remote America and their fiscal status in terms of their health on the bottom line. And I think if you can get some meaningful, targeted reform through that offers them some improvements, that does not force the sort of cost efficiencies that they are driving that is compromising these performances, there could be some additional improvement. Senator Heitkamp. I think it is critical that we look for efficiencies, but I am always reminded of the story, if you are in retail business and you decide to cut your inventory and your cost of goods sold, you will not be in business very long. Mr. Acton. Yes, agreed. Senator Heitkamp. And that is my point. My point is if you cut service to the point where you are not delivering anything, that will just continue this spiral. And so you have to be ready to deliver the service that you are making a commitment to deliver. And if you cannot meet those, you are going to lose business, and it is going to be, I think, even more difficult for the Postal Service to catch up. So just know we are going to be myopically focused on this service issue. We think it is critical. And we need a partner on the Commission, partners on the Commission in doing that. Thank you, Mr. Chairman. Senator Lankford. Senator Tester. OPENING STATEMENT OF SENATOR TESTER Senator Tester. Thank you, Mr. Chairman and Ranking Member, for having this hearing. Thank you both for your willingness to serve. I guess we will start out with one of the things you said, Mr. Taub, that the balance sheet needs to be fixed, and I could not agree more. Have you looked at any of the proposals that have been put forth over the last 6 years to see if you have a favorite? Mr. Taub. Senator, I do not have a favorite. What I have a favorite for is having something done to fix the balance sheet. I think all of them are moving in that same direction. Senator Tester. And I could not agree more with Mr. Acton when--I mean, I think finances do have an impact on everything we do. And so hopefully in this new Congress--I do not know that you are still going to be in this position, Senator Carper, but if you are, or whoever is Ranking Member of this Committee with the Chairman, make this a priority to get it done, because it is just really important, as Senator Heitkamp has pointed out, for rural America. Have you had the opportunity to go back and look at the Network Rationalization Plan--this is for either one of you-- that was supposed to save a whole bunch of money, hundreds of millions of dollars, and it ended up costing millions of dollars, to determine what went wrong? Because, quite frankly, there were Members on this Committee that were arguing very vociferously not to close down all those processing centers. In Montana, I think we went from seven to three. You have trucks going over passes in wintertime. I mean, it was obvious what was going to happen, and what happened, happened. Your transportation costs went through the roof, and that is with $2.35 gas. So have you guys taken a look to see why it went south and we did not save the kind of money that was being predicted? Mr. Taub. Senator, we have not. We did under the law, because the separation of regulator and operator, when it came to the change itself, the Postal Service had to seek what was called an ``advisory opinion'' from us in 2012, and we outlined some very deep concerns to the Postal Service about how they are proceeding and some caution. But under the law, they can proceed forth once they had that advisory opinion, which they did. I do know their Office of Inspector General (OIG), which does have that focus on fraud, waste, and abuse, has done some studies to look at the network rationalization and has identified that the cost savings that they were expecting have not borne fruit to the level they thought. Senator Tester. So who puts forth the recommendations on how to fix it? I mean, one of the reasons it takes a week to mail a letter and get it across the State in Montana is we do not have those processing centers. I can give you plenty of examples where a letter that would go down a block or two would have to travel 300 miles or better. So who puts forth the proposals on how to fix it? Mr. Taub. The U.S. Postal Service does. Senator Tester. And you either bless it or you do not? Mr. Taub. They actually do not need our approval on that, but that is where Senator Heitkamp's legislation that you have been a cosponsor on would give us some tools to take that further under current---- Senator Tester. OK. So let us talk about what your authority is. Is it strictly pricing? Mr. Taub. No. We do, as I was mentioning, oversee and report on service where, before the 2006 law, we were not providing that transparency. Senator Tester. OK. Mr. Taub. So we have been able to say---- Senator Tester. But when it comes right down to it, if the Postal Service wants to do it, you cannot stop them. Mr. Taub. That is correct. Senator Tester. So what is your club? Mr. Taub. The club, when it comes to service, is our providing that report that did not exist in 2006, which is clear transparency on what is going on. So rather than, say, before 2006, where the Postal Service said, ``Yes, you may be hearing some problems from your constituents, but trust us, it is OK,'' we now have the data, fully transparent, reliable, and accurate, that shows performance is not being met. We have taken them to task on that. We have asked for reports on how to improve it. We are getting those reports. But in terms of our ability to, if you will, force those changes, that is not fully in our toolkit right now when it comes to the service. But compared to where we were before the 2006 law, there is more transparency. Senator Tester. So help me through this. I do not have my staffer whispering in my ear, so I will just ask you. If they want to close down a processing center, who makes that call? Mr. Taub. The Postal Service's Board of Governors. Senator Tester. The Board of Governors. And that is it, once they make it? Mr. Taub. Again, the theory in the 2006 law was maintaining this regulator versus operational separation. So there was a view that when it came to processing plants, that is an operational decision for the U.S. Postal Service and the Governors who exercise the powers of the Postal Service. Senator Tester. OK. So on your Commission, on the PRC, is there a view that the Postal Service has outlived--you did not say it in your opening statement, but is there a view by some members on the PRC that the Postal Service has outlived its usefulness? Mr. Taub. Senator, I can speak for myself on this, that no way in heck have they---- Senator Tester. But how about the rest? And either one of you, just your sentiments. This is not about you guys. It is about the Board in general. I know there are only four and there needs to be five. But just tell me, is it--because I have gotten the sentiment by some in the Postal Service, I have gotten the sentiment by some in the Senate, by some on this Committee, that they would like to see it go away and let UPS and FedEx handle it. Mr. Acton. I would just say, Senator, that with the proper sort of targeted reform that this chamber and the House are considering, I think there is a bright future for the Postal Service. Senator Tester. I could not agree more. Mr. Acton. The aspects of the present situation that concern me most in terms of what you are talking about as an alternative go to these issues with respect to rural or remote America, because if you move, I think, to try to reduce the Postal Service's footprint in certain parts of America by, say, privatizing certain aspects of it, it is going to compromise the integrity and the livelihood of the entire infrastructure in a fashion that could have consequences which we do not anticipate well or plan for properly at this point. But, with just a few changes--for instance, this reamortization of the unfunded liabilities, that is the one position that the Commission has come forth in response to a congressional request to offer expert testimony that says that those changes should be made in a responsible fashion. The intent of covering those unfunded liabilities through the percentages that they initially enacted was a very responsible public policy approach, but it had some unintended consequences that basically have brought the Postal Service to the brink of bankruptcy. Senator Tester. Right. Mr. Acton. So the Commission is on the record with its viewpoint that some nature of reamortization needs to be done, and that alone could go miles toward establishing the Postal Service's fiscal health. Senator Tester. Make no mistake about it. As we point fingers at one another, Congress gets most of the fingers pointed at them, and rightfully so. We have not acted, and we should have acted many Congresses ago. And so thank you, folks, for your testimony and thanks for your willingness to serve. Thank you, Mr. Chairman. Senator Lankford. Thank you. Senator Peters. OPENING STATEMENT OF SENATOR PETERS Senator Peters. Thank you, Mr. Chairman. And, again, I would reiterate what my colleagues have said. We appreciate your service and willingness to serve. This is a very difficult position that you will be conducting, but we stand behind you, and we have to figure out ways to make this work. My colleagues raised a number of issues that I had when I came here, so you have answered some of those. But I would pick up a little bit on what Senator Tester asked related to processing centers and take it down to local post offices. The State of Michigan, which I represent, has a very large rural population in addition to the urban areas, and folks have been concerned about individual post office closures and the negative result that that has brought about to their community. My understanding is that you are involved in oversight of the appeals process where communities can appeal. Could you tell me a little bit about that appeals process and how you see that functioning? And are there things that we need to be aware of to potentially improve the opportunity for folks to have a stronger impact in that appeals process? Mr. Taub. Senator, we have a process that dates from the 1970s and the law in which any community or a patron of a post office, if it is being closed, can appeal to the Commission for a review as to whether the Postal Service followed the procedures that are outlined in statute. And if not, the Commission either can remand that decision back to the Postal Service for further action or affirm it. However, when it comes to processing facilities, as we were discussing with Senator Tester, those are not part of the process that the Commission is involved in and are wholly within the purview of the U.S. Postal Service itself. But I do believe the community aspect of citizen participation that allows people to come to the Commission is an important feature that should be maintained. I would note that the Commission updated and modernized its rules on post office closures in 2011 and 2012, and we recently held a proceeding looking at some precedent in this area. So we are trying to stay fresh and involved in that. But when it comes to the processing plants, that is just in the purview of the U.S. Postal Service itself. Senator Peters. Right, I realize that. But I am talking about individual post offices, which you have addressed, which have an impact on the community. At least some of the feedback that I have received from these local communities is that the decisionmakers look at the issue related to the health of the Postal Service as opposed to the impact on the local economy, and that the local economy should be factored in more in some of that appeals process. Is that accurate? Is that a concern or not? If you could comment on that, I would appreciate it. Mr. Acton. Thank you for the question, Senator. My personal view on the post office appeals process, as it is called, is that the name alone is a bit misleading. It implies that the Commission is empowered with the responsibility to decide whether or not the Postal Service has made the proper decision about closing or relocating a given post office, when indeed what it is is the Commission is tasked by law to review the administrative record that the Postal Service assembles in managing these decisions. So when the Postal Service comes to us in answer to an appeal for a given post office, they have to demonstrate to the Commission that they followed the proper rules and regulations that are outlined for building the record that is needed to make the decision that Postal Service management has made. And often those decisions are related to portions of the Postal Service network where it is not clear what the Commission's authority is. And in our recent 701 report, we put forth some recommendations, since you are contemplating postal reform, where you might want to improve that clarity about where the line is drawn between what the Postal Service does with respect to post office closings and suspensions and what the Commission is responsible to do. And I think that would be helpful moving forward. Senator Peters. And some clarification as to criteria beyond just following certain processes? Mr. Acton. People talk about applying criteria for the universal service obligation and for closing post offices, and I think that, broadly speaking, that is wise, and we have done that in the past in our Universal Service Obligation study where we talk about the various elements and aspects of the USO. But I also know now through my experience in having done dozens of these post office closing appeals and reviews that they are fact set specific; that what constitutes troublesome 5 miles in Idaho can be much different than 5 miles in a more urban area. So lots of times, those considerations have to be taken up on an instance-by-instance basis, which is what the Commission does. I think if you start trying to apply general metrics about, do not close a post office within a certain radius of a number of miles, then you begin to generalize a process which in many instances is very specific to the community at hand. Senator Peters. All right. Very helpful. Thank you. I appreciate it. Senator Lankford. Thank you. Mr. Acton, let me continue to press on through just cooperation and some of the things that you are doing, and interaction. Tell me about just the relationship between PRC right now and the Office of Inspector General for USPS, distinctly different responsibilities but I would hope there is some coordination there as well in the oversight and transparency. Mr. Acton. We coordinate with them in the sense that we often have shared examinations of similar issues of concern. Sometimes Congress is interested in knowing the Postal Regulatory Commission's position with respect to a certain issue or concern, and sometimes they want it from the OIG, and sometimes they ask for it from both. So we do not interact with the OIG's office as regularly, as robustly as we do with the Postmaster General and her executive leadership team, whom we meet with monthly. But we are informed on what the OIG is up to, and the Acting Chairman and his staff are very active in keeping the Commission in close concert with all of the important postal players, including the Inspector General's office. Senator Lankford. OK. Your group, the PRC, has subpoena power to be able to get information from USPS if needed. Are there other tools that you need to be able to do your job? Mr. Acton. Well, I will tell you that it is my fervent belief that the Postal Service management is working hard to make things better, and they are stressed with the fiscal situation which pervades every aspect of their operation. So when the regulator talks about needing to develop these methodologies or pursue these systems or come up with this data, the thing that is always in the back of my mind, and I think the Commission's mind, when we pursue those sorts of avenues is that that costs money. And the Postal Service does not have a lot of money. In fact, as you know, they are billions in debt. So we do what we can to try to stress where we think pinch points may lie and where they may focus resources and introduce some metrics that will improve the situation in terms of how the community learns about these problems and what the Postal Service is doing to address them. But there are limited arrows in our quiver with respect to what we can do to drive that type of action, and subpoena power is certainly one of them. Another one is fining them for certain offenses, like not meeting service terms. But for me, if you fine the Postal Service for a given offense, that is the mailers' money, that is the ratepayers' money; and they will end up having to pay that bill, which for me does not seem equitable. Senator Lankford. All right. Mr. Taub, the recommendations came out today, the 701 recommendations and such. Any high points that you want to be able to walk us through on that? Mr. Taub. Probably high points 1, 2, 3, 4, 5 and on is fixing the financial balance sheet. That really is our overarching message to the Congress. We offer a variety of possible options on how to do that. The Postal Service and comments that are attached to the report go beyond and offer some additional ones. The bottom-line message is anything and all of the above that can be done in a fiscally responsible way can go a long way to giving the Postal Service that breathing room. Right now they have almost no working capital, very little liquidity. That is unsustainable for a $70 billion operation itself. Senator Lankford. Let us talk a little bit about international packages coming in and the two issues that come up over and over again, and that is, prohibited items coming into the United States through USPS or paying customs fees and being able to pick those up once they are coming in. What is the progress on those? And where do things stand right now? Just picking up customs fees and then picking up prohibited items. Mr. Taub. I would say, although the Commission has a very important role when it comes to international mail issues, it is over their rates and service offerings. We have to opine on any proposals to the Department of State before they conclude those treaties. Largely, this is within an area of the Department of Homeland Security (DHS) and Customs and Border Protection, but they are interrelated. Senator Lankford. Any interrelation is obviously the cost of how it is coming in and why, and what drives that cost and such to be able to pick that up internationally. Mr. Taub. That is right, and there is, unfortunately, distortions in the international system right now that create incentives for foreign posts and foreign mailers to use the postal systems, both for the lower cost that they are paying as well as avoiding the customs fees. The 2006 law had a directive that there should have been a strive for equalization of customs treatment, and that was on the Department of Homeland Security. Suffice it to say that has not been achieved, and I know there is some pending legislation both in the Senate and the House, and I think that would take it the full step to ameliorate the problem. Senator Lankford. Any comments on that? Mr. Acton. Thank you, Senator. I would mention, this rate review that we are talking about, this 10-year rate study, calls for the Commission to look at these nine featured elements of the law and decide whether or not they are being properly balanced under the present ratemaking system. One of those objectives includes security of the mail. So there is a hook to hang our hat on here going forward in terms of examining this if we think it is appropriate, and that may be part of what the Commission does. I would just follow up for a moment about Acting Chairman Taub's reference to some of the rate-setting activities with respect to global shipping. We do provide the Department of State with insights about whether or not their proposals that they are presenting at the Universal Postal Union (UPU) are in keeping with the criteria of American law. It is usually a sort of pro forma process. We do it on a 4-year basis. But the last examination was different in a lot of regards, and there are some fundamental problems with what is happening there in terms of how those rates are set and what it means for the American consumer. For me--and I said this in my remarks--the notion that an American consumer can go on Amazon today and have the same item delivered for less from Beijing, China, than you can from Dallas, Texas, to me strikes to the core of what is wrong with an international rate-setting body where, in an organization like ours that delivers 40 percent of the world's mail, gets only one vote. And so those outcomes are not equitable for the American consumer who is interested in getting fair shipping rates. Senator Lankford. Thank you. Senator Carper, any questions? Senator Carper. I have two quick ones, if I could, Mr. Chairman. I am going to direct this first question, if I could, to Chairman Taub and then ask Commissioner Acton to respond as well. In both of your written testimonies--earlier this year, one I think before this Committee in January, I believe it was January 21, and the other I think might have been before the House Oversight and Government Reform Committee on, I want to say, May 11. But you remain optimistic--and we have heard this here today--about the future of the Postal Service and stated, and I think this is a quote--``There is still strength in the system.'' Could you just expand a little bit on that thought, if you will, Mr. Chairman? And then I am going to ask Commissioner Acton to do so as well. Mr. Taub. Definitely, Senator. Thank you. Yes, I am very optimistic about the future of the United States Postal Service. Despite all the challenges that face us, it is still that key center of gravity (COG) of a delivery system in the United States that American businesses and households depend upon. As you indicated in your statement, by some estimates it is the center and a linchpin of a $1.4 trillion sector of our economy with 7.5 million jobs. So despite the problems the Postal Service faces, that is enormous strength that the Congress, the President, and all policymakers can build upon. So despite the loss of First-Class Mail and the reduced revenues there, I think the Postal Service is going through that process of, as some have called it, ``a new normal.'' But the idea that it is time to shut out the lights and we no longer need a postal administration--if it did not exist, we would have to think of it. Senator Carper. Thank you. Mr. Acton. I think you know, Senator, that public opinion polls consistently rate the United States Postal Service as the most trusted government agency in the land, and that does not happen by happenstance. It happens because, despite people's concerns about waiting time at the post office or what-not, they almost invariably have a great appreciation for this Federal Ambassador who visits their household, reaches out and touches their homes 6 days out of 7, and sometimes 7 out of 7. So I do not foresee the demise of the Postal Service by any means within the short term. I think that we have at hand a toolbox of reform that can make an important difference to put the Postal Service back in the black for years and years to come. Senator Carper. I like that, ``Back in the black.'' Maybe that could be our slogan here. A last question. I would direct this to you, Commissioner Acton, and, Chairman Taub, if you would like to take it on too, just briefly. Mr. Commissioner, what do you think might be the biggest challenge out of several challenges that plague the U.S. Postal Service in your eyes? And what is your role as a Commissioner in helping the Postal Service evolve in its third century and to remain relevant for years to come? Mr. Acton. We have been harping today on the problems with the Postal Service's business model, and I would say that that, of course, is the most challenging aspect of what the Postal Service is facing because it compromises every element of their operation, because once you start hemorrhaging losses at that scale, it pervades the entire enterprise. So I think the Commission's role here is still what the Commission's role was when it was created in the 1970s as the Postal Rate Commission. The Congress wanted out of postal rate setting. They wanted an expert body who could provide legal and technical assistance to give you the sort of information and insight that you are asking for here today so that you can make informed judgments which you have reserved for yourself, and rightly so, about what will best work to bring the Postal Service back to viability. So, for me, the Commission's real role here is to do what we are trying to do, which is focus the resources you afford us in a fashion that informs your view so that good decisions can be made. Senator Carper. Thank you. Mr. Chairman. Mr. Taub. Senator, I would echo Commissioner Acton's points on that. First and foremost, the financials need to be fixed. And, second, I am a big proponent of strategic planning, in the small percentage of time where you can be proactive as opposed to reactive. We just concluded just a few months ago a strategic planning process, issued a new strategic 5-year plan for the Commission where we identified our strengths, our challenges going forward, involved the whole agency from top to bottom. And first and foremost was a reaffirmation of our basic mission, which is twofold: transparency and accountability to the U.S. Postal Service, and ensuring a vital and efficient universal mail system for the United States. That is part and parcel of what we see our role in doing. Our challenge, quite frankly, is ensuring we have the staff and resources to do what needs to be done. We are a very small agency, a micro agency. We are about 75 folks. That includes the five Commissioners and their staff. We have our own Office of Inspector General, which is another three folks--once you peel back the administrative folks, it is really about 40 staff working really hard day in and day out ensuring that transparency and accountability. Our appropriation has been generally flat-lined, and to deal with that in previous years, the Postal Regulatory Commission was deferring hiring and deferring investments in information technology (IT) that are no longer sustainable. With the Congress' help, this past appropriations cycle we have been starting to turn the curve on that. But those are some of the internal challenges that we have, and certainly the external one for the Postal Service is the financials. Senator Carper. Good. Thanks. Just a concluding thought, if I could, Mr. Chairman. First of all, our thanks to both of you for your service to date and for your willingness to continue to serve. I think there is great opportunity that lies ahead, and I think you may in these positions, if you are reconfirmed, be in a position to help us seize the day, and that would be wonderful. I am encouraged that it can and will happen. I serve on another Committee called Environment and Public Works, and a couple of years ago, Mr. Chairman, maybe 6 years or so ago, George W. Bush was the President and he offered legislation called ``Clear Skies.'' It dealt with emissions of sulfur dioxide, nitrogen dioxide, mercury, and CO2 for the regulated community, utilities, and I offered legislation--we called it ``Really Clear Skies.'' And we brought in a bunch of utility Chief Executive Officers (CEOs) to come in and testify before us on--not to testify but actually meet with us in private on the President's proposal and our proposal, bipartisan proposal in the Senate. And I will never forget this one curmudgeonly old CEO from a utility, a southern utility. And he came in and he said to us about both the proposals, the President's proposal and our proposal, he said, ``Here is what you should do, Senator. Here is what you and your colleagues should do. Tell us what the rules are going to be. Give us some flexibility, give us a reasonable amount of time, and get out of the way.'' And what he was really saying is that they wanted some certainty and predictability, they wanted some flexibility, and a reasonable timeframe. And I think we have an obligation to those who are served by the Postal Service to better ensure they get the kind of service that they want and deserve and that we want them to have. But a good place to start, before we even pass our legislation--and I hope we will pass legislation. I hope we will actually continue the very hard work that is being done, Democrat and Republican, House and Senate, to narrow our differences and to try to do our job this year before we go home for the holidays. But a good place to start is with confirming these nominations. Excellent nominations. Both I think are Republican, if I am not mistaken. But we are lucky to have you in these jobs. The second would be we have--the President has nominated six people to serve as the Board of Governors. I just said to the Chairman that the one remaining non-postal person on the Board of Governors, they just had his retirement party yesterday, and so we are down to zero folks on the Board of Governors who are not part of the Postal Service. That is just not acceptable. And so we have excellent nominees to report out of Committee. We need to get that done. And I think there is a clear path to actually--not an easy path but a clear path to having bipartisan legislation to actually address a lot of the concerns that need to be done, the work for us to be enablers for the Postal Service, and for you to be able to do your work. And I am going to fight like hell to see that we realize that potential this year--this year, not some year down the road but this year--to get it done while we can, do our job. Thanks so much. Senator Lankford. Thank you, Senator Carper. Just one comment to my friend. As you were recalling it, 4, 5, maybe 6 years ago when President Bush was President, I think it is more than six. Senator Carper. Probably. [Laughter.] It only seems like two or three. Senator Lankford. It always does. Time is flying when you are having fun with it. Gentlemen, you have served the men and women of the USPS, and we are very grateful for that. They are some very fine folks, including some of my own family members, that serve, that are out, as you all know well, in rain, snow, sunshine, whatever it may be. There are people that most of our neighbors will never, ever meet that are literally being served by folks every single day that work for the United States Postal Service. And so I want to say to you thank you for your service to them as they serve the entire Nation and as you all serve the Nation as well. This is a difficult, complicated task, and what we have asked you to do is difficult, because none of these decisions are easy. Twenty years ago, this was a simpler job. It is no longer simple, and this is a complicated process that we all have very hard decisions to make in the days ahead, and we appreciate your insight with that. Mr. Taub and Mr. Acton have filed responses and biographical and financial questionnaires, answered prehearing questions submitted by the Committee, and have had financial statements reviewed by the Office of Government Ethics. Without objection, this information will be made part of the hearing record\1\ with the exception of the financial data, which is on file and available for public inspection in the Committee offices.\2\ --------------------------------------------------------------------------- \1\ The information of Mr. Taub appears in the Appendix on page 30. \2\ The information of Mr. Acton appears in the Appendix on page 76. --------------------------------------------------------------------------- The hearing record will remain open until 12 p.m. tomorrow, November 16, 2016, for the submission of statements and questions for the record. To both of you, thank you, and to your families, thank you for your endurance through this long confirmation process, and we look forward to passing it on to the full body in the days ahead. With that, this hearing is adjourned. [Whereupon, at 3:34 p.m., the Committee was adjourned.] A P P E N D I X ---------- [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]