The U.S. Postal Service continues to hemorrhage money, with a loss of $2.2 billion in the most recent quarter.
The national mail service said Tuesday that it expects to have a cash shortfall and reach its statutory borrowing limit by the time its fiscal year ends in September. That means the agency could be forced to default on some of its payments to the federal government.
Patrick Donahoe, the Postmaster General, said the service is still seeking changes to federal laws that would allow it to change its business model and potentially save enough money to avoid a default.
“The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens,” Donahoe said in a statement.
At issue is a 2006 law requiring the service to pay between $5.4 and $5.8 billion into its prepaid retiree health benefits each year. In addition, the agency is seeking Congressional approval to eliminate Saturday mail service.
The postal service has estimated that moving to five day service could save $3.1 billion. But the Postal Regulatory Commission, which oversees the agency, issued an advisory in March that put the savings at a much more modest $1.7 billion.
While the Postal Service is not strictly a government agency, it is not exactly a private business either.
(Source: CNN)
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4 Responses
Let them cut back to 5 day a week service and raise the rates on junk mail
Cut Saturday delivery.
Let them raise the rate for junk mail to the same rate as first class. This will also cut down the volume of junk mail significantly ( an added blessing).
Let them cut back on an overabundance of so called “supervisors.”
I ship daily with USPS and their delivery record is about 99%. They virtually ALWAYS deliver when promised, there should be no reason that a business that perfroms this well should go under. It doesn’t make sense.
They must cut back on their unnecessary work force. Ask your mailman how many people they have in their branch that just hang around and count mail. That’s where all the money is going.