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WASHINGTON - Facing a $238 billion shortfall over the next decade, Postmaster General John Potter on Tuesday outlined several legislative and regulatory changes that he believes are necessary to maintain a viable United States Postal Service.

The most dramatic proposal is the elimination of Saturday mail delivery. Other changes proposed by Potter include restructuring retiree health benefits, possible price increases, and expanding the number of postal products.

In a nod to the rise of electronic communications and the widespread use of shipping agencies such as FedEx and UPS, Potter noted, "Lifestyles and ways of doing business have changed dramatically in the last 40 years, but some of the laws that govern the Postal Service have not. These laws need to be modernized to reflect today's economic and business challenges and the dramatic impact the Internet has had on American life."

The Postal Service examined revenue, volume and consumer trends; analyzed revenue and product opportunities employed by foreign posts; and examined more than 50 possible actions to realistically address volume declines that will not return, increasing health care and delivery costs, and dramatic changes to consumer behavior.

Potter will forward the proposal for a 5-day week to the Postal Regulatory Commission, which will in turn debate the proposal, seek expert testimony and then issue its own recommendations.

The chair of the commission, Ruth Goldway, urged caution, saying, "The Postal Service is an enormous organization. This change in service that they're proposing is a very complex and significant change. The Postal Service is an essential part of the country's infrastructure, so you don't want to change it willy-nilly."

As a function of the federal government, the Postal Service is currently mandated under U.S. law to deliver mail six days per week. Changing that schedule, if the commission does recommend it, would require congressional approval.

More information about the proposal can be found by clicking here.