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We are going to consider a number of options for giving the Postal Service permission to modify the way it operates.

As discussed above, the Postal Service is not able to meet its current requirements. While it is possible that the Congress may lessen the requirement for prefunding, right now the Postal Service must still deal with it.

Furthermore, the Postmaster General says that, even if the prefunding requirement were lifted, the Postal Service would still be under pressure from various changes, primarily due to the Internet reducing certain kinds of mail.

The Postal Service is also in a challenging position financially. Recently it has had to borrow money from the US Treasury and this credit line is now exhausted. As you may know, the Postal Service is not funded by the federal government but by its business activities.

Thus, the Postmaster General and some members of Congress have called for giving the Postal Service permission to make certain changes in the way it does business in order to make it more viable in the long term.

You will now be presented a series of options that are being considered. These options have been proposed by the Postmaster General, by the Inspector General of the Postal Service, or in bills being considered in Congress.

These include options for increasing revenues and for reducing costs. Some of these options involve changes in the nature of the role of the Postal Service. Thus, they are quite controversial. You will be asked to evaluate the arguments for and against each option.

After evaluating all the options, you will select a package of options that you think includes the best ideas.

We will explore options for increasing revenues first.