Statement of Administration Policy: S. 2449 - Postal Service Budgetary Treatment Act of 1988

(Senate)
(Pryor (D) Arkansas and 74 others)

The Administration is opposed to removing the U.S. Postal Service from the Federal Budget, and the President's senior advisers would recommend that he veto any bill presented for his signature which, like S. 2449, includes such a provision. The U.S. Postal Service is wholly-owned by the Federal Government, and its revenues, expenses, and liabilities are Federal revenues, expenses, and liabilities. Omitting the U.S. Postal Service from the Budget would therefore misrepresent the full range of the Federal Government's financial activity and the true extent of the Federal deficit.

The Administration is particularly concerned that removing the U.S. Postal Service from the Federal Budget would lead to further erosion of the integrity of the unified budget by encouraging other Federal entities to seek off-budget status. In this regard, the Administration would oppose any amendment to remove the Highway Trust Fund or the Airport and Airway Trust Fund from the Federal Budget. The Administration would also oppose any amendment to incorporate provisions of S. 1600 establishing an independent Federal Aviation Administration. The President's senior advisors would recommend that he veto any bill presented for his signature which includes any such provision.