For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34188 ------------------------------------------------------------------------------ Order Code RL34188 Congressional Official Mail Costs Updated March 26, 2008 Matthew E. Glassman Analyst on the Congress Government and Finance Division Congressional Official Mail Costs Summary The congressional franking privilege allows Members of Congress to send official mail via the U.S. Postal Service at government expense. This report provides information and analysis on the costs of franked mail in the House and Senate. In FY2007, overall expenditures on official mail were $17,523,139. House official mail costs ($14,215,689) were 81.1% of the total, whereas Senate mail costs ($3,307,450) were 18.9% of the total. In the House, 90.3% of mail costs were Member mass mailings, whereas approximately 22.7% of Senate mail costs were Member mass mailings. Seventy-eight percent of House offices and 28% of Senate offices sent at least one mass mailing. These expenditures continue a historical pattern of Congress spending less on official mail costs during non-election years than during election-years (Figure 3). However, analysis of monthly data on official mail costs indicates that, due to the structure of the fiscal year calendar, comparisons of election year and non-election year mailing data tend to overstate the effect of pre-election increases in mail costs, because it also captures the effect of a large spike in mail costs from December of the previous calendar year. The analysis demonstrates that between FY2000 and FY2007, higher official mail costs in even-numbered fiscal years occurred for two reasons: a general increase in monthly mail costs prior to the pre-election prohibited period, and a significant spike in costs during December of odd-numbered years. Both increases were largely the result of an increase in the number of House Members sending mass mailings during those months. During the past 20 years, franking reform efforts reduced franking expenditures in both even-numbered and odd-numbered years (Table 2). Even-numbered year franking expenditures have been reduced by almost 70% from $113.4 million in FY1988 to $34.3 million in F2006, while odd-numbered year franking expenditures have been reduced by over 80% from $89.5 million in FY1989 to $17.5 million in FY2007. House mail costs have decreased from a high of $77.9 million in FY1988 to $14.2 million in FY2007. The Senate has dramatically reduced its costs, from $43.6 million in FY1984 to $3.3 million in FY2007. This report will be updated annually. See also CRS Report RS22771, Congressional Franking Privilege: Background and Current Legislation; CRS Report RL34274, Franking Privilege: Historical Development and Options for Change; and CRS Report RL34085, Election Year Restrictions on Mass Mailings by Members of Congress: How H.R. 1614 / S. 936 / S. 1285 Would Change Current Law. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Official Mail Costs, FY2005 to FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Official Mail Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Mass Mailing Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Election Year vs. Non-election Year . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Official Mail Costs, FY1954 - FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Increased Costs, FY1954-FY1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Costs Reduced, FY1988-FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Monthly Variation, FY2000 to FY2007 . . . . . . . . . . . . . . . . . . . . . . . . 8 List of Figures Figure 1. Monthly Official Mail Costs, October 2004 to December 2007 . . . . . . 3 Figure 2. Franked Mail Costs (FY1954-FY1977) and Official Congressional Mail Costs (FY1978-FY2007) . . . . . . . . . . . . . . . . . . . . . . . . 5 Figure 3. Official Mail Costs, by Chamber, FY1978-FY2007 . . . . . . . . . . . . . . . 6 Figure 4. Monthly Official Mail Costs, House, FY2000-FY2007 . . . . . . . . . . . . . 8 Figure 5. Monthly Official Mail Costs, Senate, FY2000-FY2007 . . . . . . . . . . . . 9 Figure 6. Monthly Official Mail Costs, Senate (re-scaled), FY2000 to FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 List of Tables Table 1. Official Mail Costs, by Fiscal Year and Calendar Year, 2005 to 2007 . . 4 Table 2. Official Mail Costs, by Chamber, FY1978 to FY2007 . . . . . . . . . . . . . . 7 Congressional Official Mail Costs Introduction The franking privilege, which allows Members of Congress to send official mail via the U.S. Postal Service at government expense, has its roots in 17th century Great Britain; the British House of Commons instituted it in 1660.1 In the United States, the practice dates from 1775, when the First Continental Congress passed legislation giving its Members mailing privileges so as to communicate with their constituents.2 Congress continues to use the franking privilege to help Members communicate with their constituents. The communications may include letters in response to constituent requests for information, newsletters regarding legislation and Member votes, press releases about official Member activities, copies of the Congressional Record and government reports, and notices about upcoming town meetings organized by Members. The franking privilege is regulated by federal law, House and Senate rules, regulations of the Committee on House Administration and the Senate Rules and Administration Committee, and regulations of the Senate Select Committee on Ethics and the House Commission on Congressional Mailing Standards. The franking privilege may only be used for matters of public concern or public service.3 It may not be used to solicit votes or contributions, to send mail regarding campaigns or political parties, or to mail autobiographical or holiday greeting materials. Although few would argue with the intent behind the frank -- to help Members better communicate with their constituents -- the privilege in recent years has been subjected to increased public criticism and extensive scrutiny by the media. Proponents of franking argue that, without the privilege, most Members could not afford to send important information to their constituents, in effect curtailing the delivery of ideas, reports, assistance, and services. Opponents, concerned with incumbent perquisites, mail costs, and the overall cost of Congress, have called for additional changes to the franking privilege, including an outright ban on franking for Members and a prohibition on use of the frank in election years. Significant reforms have been adopted as a consequence of this debate. Although the cost of official congressional mail has fluctuated widely over the past 30 years, franking reform efforts have produced almost a 70% reduction in even- 1 Post Office Act, 12 Charles II (1660). 2 Journals of the Continental Congress, 1774-1789, 34 vols., ed. Worthington C. Ford et al. (New York: Johnson Reprint Corp., 1968), vol. 3, p. 342 (Nov. 8, 1775). 3 39 U.S.C. § 3210(3)(a). CRS-2 numbered-year costs and over an 80% reduction in odd-numbered-year costs in the last 20 years, from a high of $113.4 million and $89.5 million in FY1988 and FY1989 to $34.3 million and $17.5 million in FY2006 and FY2007. Official Mail Costs, FY2005 to FY2007 Despite common public perception, franking is not free. Congress pays the U.S. Postal Service for franked mail through annual appropriations for the legislative branch. Each chamber makes an allotment to Members from these appropriations. In the Senate, the allocation process is administered by the Committee on Rules and Administration; in the House, by the Committee on House Administration. Official Mail Costs. Overall congressional mail costs include official mail sent by Members (both regular and mass mail), committees, and chamber officers.4 During FY2007, Congress spent $17.5 million on official mail according to the U.S. Postal Service, representing approximately 4½ tenths of one percent of the $3.85 billion budget for the entire legislative branch for FY2007.5 House official mail costs ($14.2 million) were 81.1% of the total, whereas Senate official mail costs ($3.3 million) were 18.9% of the total. During FY2006, Congress spent $34.3 million on official mail. House official mail costs ($30.7 million) were 89.3% of the total, whereas Senate official mail costs ($3.6 million) were 10.7% of the total. During FY2005, Congress spent $17.6 million on official mail. House official mail costs ($14.4 million) were 81.8% of the total, whereas Senate official mail costs ($3.1 million) were 18.2% of the total. Mass Mailing Costs. A mass mailing is defined as 500 or more substantially similar pieces of unsolicited mail sent in the same session of Congress.6 In FY2007, Congress spent $13.5 million on Member mass mailings. In the House, 90.3% of official mail costs ($12.8 million) were Member mass mailings, whereas Senate Member mass mailing costs ($0.7 million) were approximately 22.7% of Senate official mail costs.7 Seventy-eight percent of House offices and 28% of Senate offices sent at least one mass mailing. In FY2006, Congress spent $28.4 million on Member mass mailings. In the House, 89.4% of official mail costs ($27.5 million) were Member mass mailings, 4 Official mail costs include franked mail only, and do not include the cost of stationery supplies or production costs. 5 Throughout this report, cost figures are based on U.S. Postal Service data found in the Annual Report of the Postmaster General, additional data provided by the Postal Service, and mass mailing information contained in the Statement of Disbursements of the House and the Report of the Secretary of the Senate. 6 39 U.S.C. § 3210(a)(6)(E). 7 Senate Member mass mail percentages of total official mail costs are approximate because reported Senate mass mailing figures include the cost of paper and operating expenses. CRS-3 whereas Senate Member mass mailing costs ($0.9 million) were approximately 27.0% of Senate official mail costs. Eighty-six percent of House offices and 28% of Senate offices sent at least one mass mailing. In FY2005, Congress spent $13.0 million on Member mass mailings. In the House, 84.7% of official mail costs ($12.2 million) were Member mass mailings, whereas Senate Member mass mailing costs ($0.8 million) were approximately 27.1% of Senate official mail costs. Eighty-four percent of House offices and 31% of Senate offices sent at least one mass mailing. Election Year vs. Non-election Year. The higher official mail costs in FY2006 than in FY2007 or FY2005 continues a historical pattern of Congress spending more on official mail costs during election years. However, monthly data indicate that election year costs may be attributable to multiple factors. Figure 1 plots monthly congressional mail costs from October 2004 to December 2007.8 Figure 1. Monthly Official Mail Costs, October 2004 to December 2007 Millions of Dollars 8 FY05 FY06 FY07 FY08 December 2005 6 December 2007 August 2006 4 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 May-05 Jun-05 Jul-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 May-06 Jun-06 Jul-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 May-07 Jun-07 Jul-07 Oct-07 Nov-07 Dec-07 Sep-05 Sep-06 Sep-07 Apr-05 Aug-05 Apr-06 Aug-06 Apr-07 Aug-07 Source: CRS analysis of U.S. Postal Service data. As shown in Figure 1, the lowest monthly costs occur in October ($0.3 million) and November 2004 ($0.7 million), and September ($0.7 million), October ($0.4 million), and November 2006 ($0.5 million). This reflects the prohibition on mass mailing in the Senate (60 days) and House (90 days) prior to the general elections of November 2004 and November 2006. 8 Additional monthly data is available in Figure 4, Figure 5, and Figure 6, pp. 8-9. CRS-4 The higher monthly costs occurred in December 2005 ($5.8 million), December 2007 ($5.0 million), and the six months (March-August) prior to the pre-election prohibited period for the 2006 general election. Figure 1 demonstrates that the higher mail costs in FY2006 result from two separate events: a general increase in monthly mail costs prior to the pre-election prohibited period, and a significant spike in costs during December of 2005. Both of these increases are largely due to increased mass mailings by Members of the House during those periods. House Member mass mailings made during the first quarter of FY2006 (October-December) cost $8.8 million dollars, compared to an average of $3.2 million over the four quarters of FY2007 and $3.0 million over the four quarters of FY2005. House Member mass mailings made during the second ($5.1 million) and third ($6.8 million) quarters of FY2006 also were significantly higher than the FY2007 or FY2007 quarterly average. Critics of the franking privilege have often cited increased election-year mail costs as evidence of political use of the frank prior to elections.9 Although mail costs do rise in the months prior to the pre-election prohibited period, Figure 1 shows that the structure of the fiscal calendar is also important in creating large disparities between election year and non-election year mail costs. Since the fiscal years run from October 1 to September 30, both the December spike in mail costs and the pre-election rise in mail costs occur in the same fiscal year, despite taking place in different calendar years and different sessions of Congress. Table 1 compares mail costs in 2006 and 2007, measured by fiscal and calendar year. Table 1. Official Mail Costs, by Fiscal Year and Calendar Year, 2005 to 2007 Overall Official Mail Costsa Year Fiscal Year Calendar Year 2005 $17.6 million $24.5 million 2006 $34.3 million $26.6 million 2007 $17.5 million $24.8 million Source: CRS analysis of U.S. Postal Service data a. Columns do not sum to the same total because fiscal years and calendar years do not correspond. FY2005 includes data from October-December 2004 and CY2007 includes data from October- December 2007. 9 See Common Cause, "Franks A Lot," press release, June 16, 1989, Common Cause Records, 1968-1991, Series 15, Box 293, Princeton University, Seely G. Mudd Manuscript Library; Common Cause v. Bolger, 512 F. Supp. 26, 32 (D.D.C. 1980). CRS-5 As shown in Table 1, when annual costs are compared by calendar year, the December spike and the pre-election increase balance out, and the totals are relatively similar. Thus comparisons of fiscal year official mail costs tend to overstate the effect of pre-election increases in mail costs, because they also capture the effect of the December spike in mail costs. Official Mail Costs, FY1954 - FY2007 Data on congressional official mail costs is only available back to FY1978. The Post Office, however, kept records of overall franking costs beginning in FY1954, when Congress began reimbursing the Post Office for franked mail costs. Franked mail costs differ only slightly from congressional official mail costs, as they include the franking privilege granted to former Presidents and widows of former Presidents. Figure 2 is a plot of overall franked mail costs (FY1954 to FY1977) and official mail costs (FY1978 to FY2007) in both current and constant 1954 dollars. Figure 2. Franked Mail Costs (FY1954-FY1977) and Official Congressional Mail Costs (FY1978-FY2007) (current and constant 1954 dollars) Millions of dollars 120 100 Current dollars 80 60 40 Constant dollars 20 0 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 FY --------- Franked Mail Costs Official Mail Costs Source: CRS analysis of U.S. Postal Service data. Figure 2 demonstrates that franked mail/official mail costs significantly increased and then significantly decreased between FY1954 and FY2007. Although costs began to increase during the 1960s, the largest increases occurred during the 1970s. Costs remained high during the 1980s, and then were reduced significantly beginning in FY1989. Increased Costs, FY1954-FY1988. The sharp increase in costs that begins in the late 1960s and extends into the 1980s is plausibly attributable to several factors. The overall volume of mail sent by Members of Congress increased rapidly CRS-6 during this time period, aided by computer technology that simplified the creation of mass-mailing newsletters and other frankable mail. Second, postal rates increased significantly during the same time period, with first-class mail rates increasing from 8 cents in FY1972 to 25 cents by FY1988. Standard mail (formerly third-class) rates increased from 5 cents in FY1972 to 10 cents in FY1988. Costs Reduced, FY1988-FY2007. Official congressional mail costs have fallen significantly in the past 20 years. Even-numbered-year franking expenditures have been reduced by almost 70% from $113.4 million in FY1988 to $34.3 million in F2006. Odd-numbered-year franking expenditures have been reduced by over 80% from $89.5 million in FY1989 to $17.5 million in FY2007. Figure 3 depicts in graphic form changes in official mail costs, by chamber, between FY1978 and FY2007 (the same data is available in Table 2). The decrease in official mail expenditures during the early 1990s was primarily due to congressional reforms that placed individual limits on Members' mail costs and required public disclosure of individual Member franking expenditures.10 In 1986, the Senate established a franking allowance for each Senator and for the first time disclosed individual Member mail costs.11 In 1990, the House established a separate franking allowance for its Members and required public disclosure of individual mail costs.12 Figure 3. Official Mail Costs, by Chamber, FY1978-FY2007 Millions of Dollars 100 80 60 House 40 20 Senate 0 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 FY Source: CRS analysis of U.S. Postal Service data. 10 For a historical overview of franking regulations, see CRS Report RL34274, Franking Privilege: Historical Development and Options for Change, by Matthew E. Glassman. 11 S.Res. 500, 99th Cong., 2nd sess., agreed to in the Senate Oct. 8, 1986. 12 Legislative Branch Appropriations Act, FY1991, P.L. 101-520, 104 Stat. 2254, 2279, sec. 311. CRS-7 Tighter restrictions were also placed on Member mass mailings. Since October 1992, Members have been prohibited from sending mass mailings outside their districts.13 Since October 1994, Senators have been limited to mass mailings that do not exceed $50,000 per session of Congress. Senators may not use the frank for mass mailings above that amount.14 Table 2. Official Mail Costs, by Chamber, FY1978 to FY2007 (in current dollars)a Fiscal Year House Senate Total 1978 $35,109,000 $13,817,000 $48,926,000 1979 27,729,087 15,213,555 42,942,642 1980 43,421,682 18,484,220 61,905,902 1981 29,686,213 24,175,800 53,862,013 1982 59,894,236 40,143,989 100,038,225 1983 40,306,625 32,126,335 72,432,960 1984 67,348,392 43,608,944 110,957,336 1985 45,308,146 39,852,648 85,160,794 1986 60,400,595 35,538,040 95,938,635 1987 44,200,958 19,423,954 63,624,912 1988 77,852,082 35,507,565 113,359,647 1989 57,220,627 32,283,506 89,504,133 1990 72,942,800 15,001,842 87,944,642 1991 31,343,891 11,744,034 43,087,925 1992 54,339,650 17,422,313 71,761,963 1993 24,619,471 10,581,895 35,201,366 1994 42,372,044 10,647,268 53,019,312 1995 24,553,291 5,480,523 30,033,814 1996 28,990,765 5,096,346 34,087,111 1997 15,371,039 3,417,328 18,788,367 1998 27,726,139 3,629,446 31,355,585 1999 14,917,510 3,117,940 18,095,450 2000 27,020,352 3,308,242 30,328,594 2001 13,880,914 2,886,983 16,747,967 2002 28,145,897 2,856,051 31,001,948 2003 15,965,517 3,323,378 19,288,895 2004 30,040,867 3,631,452 33,672,319 13 Legislative Branch Appropriations Act, FY1993, P.L. 102-292, 106 Stat. 1703, 1722, sec. 309. 14 Legislative Branch Appropriations Act, FY1995, P.L. 103-283, Stat. 1423, secs. 5, 108. CRS-8 Fiscal Year House Senate Total 2005 14,440,380 3,149,771 17,590,151 2006 30,706,581 3,632,080 34,338,661 2007 14,215,689 3,307,450 17,523,140 Total $1,100,070,440 $462,409,898 $1,562,520,409 Source: CRS calculations based on U.S. Postal Service data. a. Costs are only for the cost of official (franked) mail; they do not include the cost of stationery or other supplies. Monthly Variation, FY2000 to FY2007. Official mail costs in both the House and Senate have shown significant monthly variation. Figure 4 and Figure 5 plot monthly official mail costs for the House of Representatives and Senate from FY2000 to FY2007.15 Figure 4. Monthly Official Mail Costs, House, FY2000-FY2007 Millions of Dollars 8.0 7.0 Dec-03 Dec-01 6.0 Dec-99 Dec-05 5.0 Dec-07 Aug-02 Jul-04 Aug-06 4.0 Aug-00 3.0 2.0 1.0 Sep-00 Oct-02 Oct-04 Oct-06 0.0 2000 2001 2002 2003 2004 2005 2006 2007 FY Source: CRS analysis of U.S. Postal Service data. 15 Monthly official mail costs data are not available prior to FY2000. CRS-9 Figure 5. Monthly Official Mail Costs, Senate, FY2000-FY2007 Millions of Dollars 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 Sep-05 Sep-07 Sep-00 Sep-03 0.0 2000 2001 2002 2003 2004 2005 2006 2007 FY Source: CRS analysis of U.S. Postal Service data. Figure 4 demonstrates that the two spikes in official mail costs found in FY2006 and FY2007 (as described in Figure 1) are regular trends. From FY2000 to FY2007, peaks in House official mail cost occur cyclically, with the highest costs found in December of odd-numbered years and July or August of even-numbered years. The lowest costs occur during the pre-election months in which Member mass mailings are prohibited, and in the months immediately following the general elections. Figure 5, plotted on the same scale as Figure 4, demonstrates the relatively low costs of Senate official mail in comparison to House official mail costs. These lower costs are attributable to proportionally fewer Senators than Representatives franking mass mailings, as well as Senate rules that limit Senators to $50,000 for mass mailings in any fiscal year.16 Figure 6 provides a re-scaled view of monthly Senate official mail costs. The pattern in costs in the Senate are similar to the House of Representatives, but not as strong. Costs peak annually in September, and are higher in the months just prior to the pre-election prohibited period. 16 Legislative Branch Appropriations Act, FY1995, P.L. 103-283, Stat. 1423, sec. 5. CRS-10 Figure 6. Monthly Official Mail Costs, Senate (re-scaled), FY2000 to FY2007 Millions of Dollars 1.0 0.9 Sep-07 0.8 Sep-05 0.7 Sep-03 0.6 Sep-00 0.5 0.4 0.3 0.2 0.1 0.0 FY 2000 2001 2002 2003 2004 2005 2006 2007 Source: CRS analysis of U.S. Postal Service data. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34188