Postal Regulatory 

Commission

Press Release

September 13, 2023

Statement of Michael Kubayanda, Chairman of the Postal Regulatory Commission, on the

Adjustment to the Commission’s Budget by the Governors of the United States Postal Service 

I appreciate the Governors’ approval of a budget but am disappointed that they declined to 

fund the Commission’s modest request of $22.6 million, less than .03 percent of Postal Service 

revenues. Most importantly, this process raised red flags about potential risks to the 

Commission’s independence.

The Governors did acknowledge that the Commission’s total FY 2024 costs are $27.2 million. I 

thank the Governors for recognizing this, as it is important for the Commission’s trajectory.

While the $27.2 million cited by the Governors is $1.5 million less than the Commission’s 

projected costs, this amount must serve as a baseline for FY 2025 and longer-term budgets 

funded by the Postal Service to avoid degrading the Commission’s capacity, eliminating 

positions in the understaffed agency, and stopping long overdue technology upgrades.

Congress created the Commission to provide transparency and accountability of the Postal 

Service. This budget cycle appeared to reverse the agencies’ statutory roles. The Governors 

asserted that their adjusted budget is “entirely sufficient” and questioned the Commissioners’ 

judgment about regulatory staffing levels, use of outside expertise, and capital investments. 

Stewardship of Postal Service funds is important, as the Governors note, even for small 

amounts relative to the size of the agency. However, Congress did not intend for the Postal

Service to determine the scope of its regulator’s activities. The Comptroller General of the 

United States cautioned a prior group of Governors applying the same budget provision that 

“the scope of the activities of the Commission should not be subject to the perceptions of the 

Governors or the state of the Service’s financial condition.” The Comptroller General 

highlighted for the Senate the potential for “abuse by the Postal Service’s Board of Governors 

of its approval authority over the amount the Commission can spend.” The Governors have 

historically respected these concerns.

Future Commission Budgets Will Need to Cover Long-Term Costs 

The $21.124 million provided by the Governors will not cover the Commission’s increased

expenses for FY 2024: rent and cost of living adjustments (COLAs) for current employees. Rent 

Postal Regulatory Commission Phone: 202789-6829

901 New York Avenue Fax: 202-789-6891

Suite 200

Washington, D.C. 20268 Contact: Gail Adams

 gail.adams@prc.gov
and COLAs will increase the Commission’s expenses by $2 million next year; yet the Governors 

increased their funding of the Commission by $0.5 million over the FY 2023 approved budget. 

Even as the Governors acknowledge the Commission’s $27.2 million in overall costs, they 

assume that essential and recurring expenses can be funded from other limited sources of 

funding. The Commission won two competitive awards from the Technology Modernization 

Fund, funded by the executive branch rather than postal ratepayers, that can be used only for 

technology investment. 

The Commission also utilizes a fixed multi-year fund held by the Postal Service to pay for 

consulting and non-recurring expenses such as capital investments in infrastructure. These 

expenses were not included in the Commission’s $22.6 million budget request to the 

Governors. 

The Commission believes it is prudent to match recurring costs such as employee compensation 

and facilities with long-term funding in its annual budget received from the Postal Service. By 

declining to cover the full $22.6 million requested by the Commission, the Governors are 

effectively forcing the Commission to pay for recurring costs out of the fixed multi-year 

account. Unless the Governors are willing to fully fund regulatory expenses on an annual basis 

going forward, long-term expenses could exceed long-term funding and require regulatory 

cutbacks that would harm the public interest. 

In a micro agency, describing growth through percentages can be misleading. For perspective 

on the percentage growth numbers cited by the Governors, in the last two years the 

Commission has seen the following.

• Overall, the Commission will have grown from 74 to 84 employees by the end of this 

fiscal year.

• The analytics team grew from 0 to 4 employees.

• The Commission is presently establishing centralized databases, information 

management systems, and cybersecurity monitoring to conform with the law, federal 

policy, and best practices. The information management and governance group grew 

from 0 to 2 employees.

Capacity is Needed for Oversight of Delivering for America and Postal Service Performance

The investments in the Commission’s capacity have allowed it to support a public inquiry into 

the Delivering for America plan (DFA). The Commission retained one expert in postal 

operations, for example. DFA has raised bipartisan concerns about longer delivery distances 

and the elimination of retail options, especially in rural and semi-rural areas. While the 

Postmaster General has objected to the inquiry, customers and Members of Congress have 

reached out to the Commission for transparency and objective insights into DFA.

The Postal Service has also lost $5.8 billion in the first three quarters of FY 2023, despite 

management projections that it would break even this year. After billions of dollars in 

legislative aid, rapidly escalating prices, and promises of cost reductions from DFA, stakeholders 

and policymakers are demanding more oversight from the Commission.

Limiting the Commission’s capacity will reduce the resources that the Commission can dedicate 

to providing transparency into DFA and overseeing the Postal Service’s performance.
We hope the Commission can work with policymakers to prevent any damage to the postal 

governance framework created by Congress.

The Postal Regulatory Commission is an independent federal agency that provides regulatory oversight over the Postal Service to ensure the 

transparency and accountability of the Postal Service and foster a vital and efficient universal mail system. The Commission is comprised of five 

presidentially-appointed and Senate-confirmed commissioners, each serving terms of six years. The President designates the chairman. In 

addition to Chairman Michael Kubayanda, the other commissioners are Vice Chairman Mark Acton and Commissioners Ann Fisher, Ashley 

Poling, and Robert Taub. Follow the PRC on Twitter: @PostalRegulator and LinkedIn.