Sec. 403. Long-term solvency plan; annual financial plan and budget
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In this section— the term Board of Governors means the Board of Governors of the Postal Service; the term long-term solvency plan means the plan required to be submitted by the Postmaster General under subsection (b)(1); and the term solvency means the ability of the Postal Service to pay debts and meet expenses, including the ability to perform maintenance and repairs, make investments, and maintain financial reserves, as necessary to fulfill the requirements under, and comply with the policies of, title 39, United States Code, and other obligations of the Postal Service.
Not later than the date described in subparagraph (B), the Postmaster General shall submit to the Board of Governors a plan describing the actions the Postal Service intends to take to achieve long-term solvency. The date described in this subparagraph is the later of— the date that is 90 days after the date of enactment of this Act; and the earliest date as of which the Board of Governors has the number of members required for a quorum. The long-term solvency plan shall take into account— the legal authority of the Postal Service; changes in the legal authority and responsibilities of the Postal Service under this Act and the amendments made by this Act; any cost savings that the Postal Service anticipates will be achieved through negotiations with employees of the Postal Service; projected changes in mail volume; the impact of any regulations that the Postal Service is required to promulgate under Federal law; projected changes in the number of employees needed to carry out the responsibilities of the Postal Service; and the long-term capital needs of the Postal Service, including the need to maintain, repair, and replace facilities and equipment.
Upon receipt of the long-term solvency plan, the Board of Governors shall review the long-term solvency plan and may request that the Postmaster General make changes to the long-term solvency plan. Not later than 60 days after initial receipt of the long-term solvency plan, the Board of Governors shall provide a copy of the long-term solvency plan to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives, together with a letter indicating whether and in what respects the Board of Governors agrees or disagrees with the measures set out in the long-term solvency plan.
The Postmaster General shall update and submit to the Board of Governors the long-term solvency plan not less frequently than annually for 5 years after the enactment of this Act. The Board of Governors shall review and submit to Congress the updates under this paragraph in accordance with paragraph (3). For each of the first 5 full fiscal years after the date of enactment of this Act, not later than August 1 of the preceding fiscal year, the Postmaster General shall submit to the Board of Governors a financial plan and budget for the fiscal year that is consistent with the goal of promoting the long-term solvency of the Postal Service.
The financial plan and budget for a fiscal year shall— promote the financial stability of the Postal Service and provide for progress towards the long-term solvency of the Postal Service; include the annual budget program of the Postal Service under section 2009 of title 39, United States Code, and the plan of the Postal Service commonly referred to as the Integrated Financial Plan ; describe lump-sum expenditures by all categories traditionally used by the Postal Service; describe capital expenditures, together with a schedule of projected capital commitments and cash outlays of the Postal Service, and proposed sources of funding; contain estimates of overall debt (both outstanding and expected to be incurred); contain cash flow and liquidity forecasts for the Postal Service at such intervals as the Board of Governors may require; include a statement describing methods of estimations and significant assumptions; and address any other issues that the Board of Governors considers appropriate.
In this paragraph, the term covered recipient means— the Postmaster General; the President; the Committee on Homeland Security and Governmental Affairs of the Senate; and the Committee on Oversight and Government Reform of the House of Representatives. Upon receipt of a financial plan and budget under paragraph (1), the Board of Governors shall promptly review the financial plan and budget. In conducting the review under this subparagraph, the Board of Governors may request any additional information it considers necessary and appropriate to carry out the duties of the Board of Governors.
If the Board of Governors determines that the financial plan and budget for a fiscal year received under paragraph
(1)meets the requirements under paragraph
(2)and otherwise adequately addresses the financial situation of the Postal Service— the Board of Governors shall approve the financial plan and budget and submit a notice of approval to each covered recipient; and the Postmaster General shall submit the annual budget program for the relevant fiscal year to the Office of Management and Budget in accordance with section 2009 of title 39, United States Code. If the Board of Governors determines that the financial plan and budget for a fiscal year under paragraph
(1)does not meet the requirements under paragraph
(2)or is otherwise inadequate in addressing the financial situation of the Postal Service, the Board of Governors shall— disapprove the financial plan and budget; submit to each covered recipient a statement that describes the reasons for the disapproval; direct the Postmaster General to appropriately revise the financial plan and budget for the Postal Service; and submit the revised financial plan and budget to each covered recipient. Upon receipt of a revised financial plan and budget under clause (i)(IV), the Postmaster General shall submit the annual budget program for the relevant fiscal year to the Office of Management and Budget in accordance with section 2009 of title 39, United States Code. Notwithstanding any other provision of this paragraph, not later than September 30 of the fiscal year that precedes each fiscal year for which a financial plan and budget is required under paragraph (1), the Board of Governors shall— submit to each covered recipient a notice of approval under subparagraph (C)(i)(I); or submit to each covered recipient an approved financial plan and budget for the fiscal year under subparagraph (D)(i)(IV). The Postmaster General may submit proposed revisions to the financial plan and budget for a fiscal year to the Board of Governors at any time during the fiscal year. The procedures described in subparagraphs
(C)through
(E)shall apply with respect to a proposed revision to a financial plan and budget in the same manner as such procedures apply with respect to the original financial plan and budget. In preparing the long-term solvency plan or an annual financial plan and budget required under this section, the Postal Service shall base estimates of revenues and expenditures on Federal law as in effect at the time of the preparation of the long-term solvency plan or the financial plan and budget.