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Getbig Main Boards => Politics and Political Issues Board => Topic started by: dario73 on January 24, 2011, 05:09:19 AM
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Postal Service Eyes Closing Thousands of Post Offices
Published January 24, 2011
| The Wall Street Journal
HOLMES MILL, Ky.—The U.S. Postal Service plays two roles in America: an agency that keeps rural areas linked to the rest of the nation, and one that loses a lot of money.
Now, with the red ink showing no sign of stopping, the postal service is hoping to ramp up a cost-cutting program that is already eliciting yelps of pain around the country. Beginning in March, the agency will start the process of closing as many as 2,000 post offices, on top of the 491 it said it would close starting at the end of last year. In addition, it is reviewing another 16,000—half of the nation's existing post offices—that are operating at a deficit, and lobbying Congress to allow it to change the law so it can close the most unprofitable among them. The law currently allows the postal service to close post offices only for maintenance problems, lease expirations or other reasons that don't include profitability.
The news is crushing in many remote communities where the post office is often the heart of the town and the closest link to the rest of the country. Shuttering them, critics say, also puts an enormous burden on people, particularly on the elderly, who find it difficult to travel out of town.
The postal service argues that its network of some 32,000 brick-and-mortar post offices, many built in the horse-and-buggy days, is outmoded in an era when people are more mobile, often pay bills online and text or email rather than put pen to paper. It also wants post offices to be profitable to help it overcome record $8.5 billion in losses in fiscal year 2010.
A disproportionate number of the thousands of post offices under review are in rural or smaller suburban areas, though the postal service declined to provide any estimate on how many beyond those slated to begin closure in March might ultimately close or which ones are being targeted. "We want to make the smartest decisions possible with the smallest impact on communities," Dean Granholm, vice president for delivery and post office operations, said in an interview. He said the agency is identifying locations that are operating at a deficit and looking "for the opportunity to start the process of closing."
In addition to reducing employees—it has cut staffing by a third since 1999— the postal service has sought for years to deal with financial woes by raising rates or cutting services, such as a proposal to drop Saturday delivery. It has also talked in the past about closing a much smaller number of post offices. But while closures have been "on the table" in the past, this push is the agency's most serious yet, Granholm said, and is drawing widespread interest from a cost-cutting Congress. Still, shutting down post offices is often politically unpopular: elected officials in several communities have already written the Postal Regulatory Commission protesting planned closures.
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From the same article:
Some lawmakers say closing post offices is the wrong answer. Sen. Susan Collins (R., Maine) says the agency should instead cut waste in its ranks. Although the postal service has cut its work force through attrition in recent years, it is still weighed down by overly generous employee benefits, she says.
Postal workers pay "significantly" lower premiums for their health and life insurance plans than other government employees because of union agreements, according to a September study sponsored by the Office of Inspector General. The report said the postal service could save $700 million this year alone by asking employees to pay more. The report, however, also said the postal service's contribution into employee benefits has started to decline, and that more reductions are planned as a result of recent union agreements.
"One of my frustrations is that the first approach the post office seems to take is to reduce service…when instead it needs to tackle a benefit structure that is too expensive, and it needs to look for ways to stay in business and deal with the digital age," says Sen. Collins.
http://online.wsj.com/article/SB10001424052748704881304576094000352599050.html?mod=WSJ_hp_LEFTTopStories
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Oh yeah. Lets allow the government to have full control of our health care. That is where Obamacare is taking us.
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haha, who was the dullard on here that tried to argue that the post office was doing "just fine?"
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They say that when the post office was under the control of Benjamin Franklin they delivered mail faster than now..
Begs the question how a business that has virtually zero competitors can lose money every year.They have a natural monopoly and can't turn a damn profit.
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haha, who was the dullard on here that tried to argue that the post office was doing "just fine?"
the US Postal Service is probably just fine
I'd buy stock if I could
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wow - I said it was "probably just fine"
a bit differnt than saying it's great and since it's been around for 200 + years and every developed country has a postal service it's a pretty safe bet to say that it's going to exist after we're all dead
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wow - I said it was "probably just fine"
a bit differnt than saying it's great and since it's been around for 200 + years and every developed country has a postal service it's a pretty safe bet to say that it's going to exist after we're all dead
So is welfare, aid to countries that support terrorism and stupidity. That doesn't mean any of the aforementioned should be encouraged or invested in.
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So is welfare, aid to countries that support terrorism and stupidity. That doesn't mean any of the aforementioned should be encouraged or invested in.
name the country and I'll tell if you I think we should be giving them aid
I'm not in favor of the way we give aid to most countries and the "aid" is usually a scam to funnel money to US backed programs or to create debt which they can never pay back
btw - this type of thing (aid) is completely bi-partisan thing.
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name the country and I'll tell if you I think we should be giving them aid
I'm not in favor of the way we give aid to most countries and the "aid" is usually a scam to funnel money to US backed programs or to create debt which they can never pay back
btw - this type of thing (aid) is completely bi-partisan thing.
LOL you missed the point he was making brain child...
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LOL you missed the point he was making brain child...
no I didn't
I might actually agree with him on the aid
I ignored the rest because it's just stupid and I'm tired of calling him stupid today
postal service is not in anyway equivalent toSo is welfare, aid to countries that support terrorism and stupidity. That doesn't mean any of the aforementioned should be encouraged or invested in.
every developed country has a postal service
think of all the federal business that is conducted through the postal service
oh wait, that would require that you and George actually do some thinking
scratch that
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no I didn't
I might actually agree with him on the aid
I ignored the rest because it's just stupid and I'm tired of calling him stupid today
postal service is not in anyway equivalent to
every developed country has a postal service
think of all the federal business that is conducted through the postal service
oh wait, that would require that you and George actually do some thinking
scratch that
his point was simply b/c something has been around for a long time or is a constant doesnt mean its doing fine or worthy of investment
that was his point
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his point was simply b/c something has been around for a long time or is a constant doesnt mean its doing fine or worthy of investment
that was his point
No Tony- he's right. My point is that because the post office has been losing tons of money due to incompetence and fiscal mismanagement, Americans should invest as much money as possible into maintaining its existence because its been around for a long time. See how much more sense his position makes than yours? ::)
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No Tony- he's right. My point is that because the post office has been losing tons of money due to incompetence and fiscal mismanagement, Americans should invest as much money as possible into maintaining its existence because its been around for a long time. See how much more sense his position makes than yours? ::)
hahahhahaha ;)
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The Post Office is doing great.
George Washington was a far-left communist like Straw Man.
Everything that Straw Man says, no matter how stupid it may come off to anyone with an IQ over 14, is right.
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The Post Office is doing great.
George Washington was a far-left communist like Straw Man.
Everything that Straw Man says, no matter how stupid it may come off to anyone with an IQ over 14, is right.
if you could read you would know I didn't say the post office was doing great and nor that Washington was a communist
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Postal Service warns of default as losses mount
By Ben Rooney, staff reporterFebruary 9, 2011: 3:47 PM ET
NEW YORK (CNNMoney) -- The U.S. Postal Service warned Wednesday that it may default on some of its financial obligations later this year after reporting yet another quarterly loss.
The USPS, a self-supporting government agency that receives no tax dollars, said it suffered a loss of $329 million in the first quarter of federal fiscal year 2011. That compared with a loss of $297 million a year earlier.
The agency has been suffering from an ongoing decline in mail volume, which has undercut revenues, while retiree health care costs have been straining its reserves.
Excluding costs related to retiree benefits and adjustments to workers' compensation liability, the Postal Service said it had net income was $226 million in the first quarter, which ended Dec. 31.
Despite ongoing cost-cutting efforts, the USPS said it expects to have a cash shortfall this year and to hit its federally mandated borrowing limit by September, when the government's fiscal year ends.
All first-class stamps to be 'Forever' stamps
The agency said it will be forced to default on some of its financial obligations this year unless Congress changes a 2006 law requiring it to pay between $5.4 and $5.8 billion into its prepaid retiree health benefits each year.
"The Postal Service continues to seek changes in the law to enable a more flexible and sustainable business model," Patrick Donahoe, the Postmaster General, said in a statement. "We are eager to work with Congress and the administration to resolve these issues prior to the end of the fiscal year."
The Postal Service has taken a number of steps to increase revenue, including marketing initiatives and price increases. The agency raised rates an average of 3.6% in January.
It is also perusing more dramatic changes. Last year, the USPS submitted a request to the Postal Regulatory Commission, which oversees the agency, to eliminate Saturday mail service. The commission has yet to respond to the request, but a spokesman said it is in the "final phase" of making its decision.
The USPS has also cut back on hours to save money. The agency expects to eliminate 40 million work hours this fiscal year as part of a plan to save $2 billion.
However, the service is currently negotiating new contracts with the American Postal Workers Union and the National Rural Letter Carriers Association, which will probably object to cutting hours.
On the bright side, the Postal Service said improving economic conditions suggest the "worst of the precipitous volume decline during the recession is over." But mail volume continues to be anemic, rising only 1.5% in the first quarter as economic growth remains sluggish.
http://money.cnn.com/2011/02/09/news/economy/postal_service/index.htm
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The USPS, a self-supporting government agency that receives no tax dollars
did anyone here know this?
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did anyone here know this?
LOL google postal service fund...
nvm here
http://www.law.cornell.edu/uscode/uscode39/usc_sec_39_00002003----000-.html
There is established in the Treasury of the United States a revolving fund to be called the Postal Service Fund which shall be available to the Postal Service without fiscal-year limitation to carry out the purposes, functions, and powers authorized by this title (other than any of the purposes, functions, or powers for which the Competitive Products Fund is available).
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LOL google postal service fund...
nvm here
http://www.law.cornell.edu/uscode/uscode39/usc_sec_39_00002003----000-.html
There is established in the Treasury of the United States a revolving fund to be called the Postal Service Fund which shall be available to the Postal Service without fiscal-year limitation to carry out the purposes, functions, and powers authorized by this title (other than any of the purposes, functions, or powers for which the Competitive Products Fund is available).
you should stop laugihing so much and take the time to look at more than the first link on google
http://usgovinfo.about.com/od/consumerawareness/a/uspsabout.htm
The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.
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you should stop laugihing so much and take the time to look at more than the first link on google
http://usgovinfo.about.com/od/consumerawareness/a/uspsabout.htm
The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.
correct my friend which means that in addition to any money borrowed against the US tax payer they also get 96 million every year...
LOL but hey "they are doing just fine" right?
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I shouldnt have updated this one. lmao!
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lol
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We have the lowest first class rate compared with Canada, France, UK, Germany, Japan, Norway
http://www.usps.com/financials/_pdf/annual_report_2009.pdf
They are mandated by Federal law to be revenue neutral
Apparently the USPS has been overpaying it's pension system, my 50 billion at the most recent count.
They are stuck with a relic of a pension system (which is a problem for other business as well as governments).
________________________ ________________
About the U.S. Postal Service
A Very "Business-like" Semi-governmental Agency
By Robert Longley, About.com Guide
.Early History of the U.S. Postal Service
The United States Postal Service1 first began moving the mail on July 26, 1775, when the Second Continental Congress named Benjamin Franklin as the nation's first Postmaster General. In accepting the position, Franklin dedicated his efforts to fulfilling George Washington's vision. Washington, who championed a free flow of information between citizens and their government as a cornerstone of freedom, often spoke of a nation bound together by a system of postal roads and post offices.
Publisher William Goddard (1740-1817) first suggested the idea of an organized U.S. postal service in 1774, as a way to pass the latest news past the prying eyes of colonial British postal inspectors.
Goddard formally proposed a postal service to Congress nearly two years before adoption of the Declaration of Independence. Congress took no action on Goddard's plan until after the battles of Lexington and Concord in the spring of 1775. On July 16, 1775, with revolution brewing, Congress enacted the "Constitutional Post" as a way to ensure communication between the general populace and the patriots preparing to fight for America's independence. Goddard was reported to have been deeply disappointed when Congress chose Franklin as Postmaster General.
The Postal Act of 1792 further defined the role of the Postal Service. Under the act, newspapers were allowed in the mails at low rates to promote the spread of information across the states. To ensure the sanctity and privacy of the mails, postal officials were forbidden to open any letters in their charge unless they were undeliverable.
For a complete history of the early Postal Service, visit the USPS Postal History web site2.
The Modern Postal Service: Agency or Business?
Until adoption of the Postal Reorganization Act of 1970, the U.S. Postal Service functioned as a regular, tax-supported, agency of the federal government.
According to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral. That is, it is supposed to break even, not make a profit.
In 1982, U.S. postage stamps became "postal products," rather than a form of taxation. Since then, The bulk of the cost of operating the postal system has been paid for by customers through the sale of "postal products" and services rather than taxes.
Each class of mail is also expected to cover its share of the costs, a requirement that causes the percentage rate adjustments to vary in different classes of mail, according the costs associated with the processing and delivery characteristics of each class.
According to the costs of operations, U.S. Postal Service rates are set by the Postal Regulatory Commission3 according to the recommendations of the Postal Board of Governors4.
Look, the USPS is an Agency!
The USPS is created as a government agency under Title 39, Section 101.15 of the United States Code which states, in part:
(a) The United States Postal Service shall be operated as a basic and fundamental service provided to the people by the Government of the United States, authorized by the Constitution, created by Act of Congress, and supported by the people. The Postal Service shall have as its basic function the obligation to provide postal services to bind the Nation together through the personal, educational, literary, and business correspondence of the people. It shall provide prompt, reliable, and efficient services to patrons in all areas and shall render postal services to all communities. The costs of establishing and maintaining the Postal Service shall not be apportioned to impair the overall value of such service to the people.
Under paragraph (d) of Title 39, Section 101.16, "Postal rates shall be established to apportion the costs of all postal operations to all users of the mail on a fair and equitable basis."
No, the USPS is a Business!
the Postal Service takes on some several very non-governmental attributes via the powers granted to it under Title 39, Section 4017, which include:
•power to sue (and be sued) under its own name;
•power to adopt, amend and repeal its own regulations;
•power to "enter into and perform contracts, execute instruments, and determine the character of, and necessity for, its expenditures";
•power to buy, sell and lease private property; and,
•power to build, operate, lease and maintain buildings and facilities.
All of which are typical functions and powers of a private business. However, unlike other private businesses, the Postal Service is exempt from paying federal taxes. USPS can borrow money at discounted rates, and can condemn and acquire private property under governmental rights of eminent domain.
The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.
Under federal law, only the Postal Service can handle or charge postage for handling letters. Despite this virtual monopoly worth some $45 billion a year, the law does not require that the Postal Service make a profit -- only break even. Still, the US Postal Service has averaged a profit of over $1 billion per year in each of the last five years. Yet, Postal Service officials argue that they must continue to raise postage at regular intervals in order make up for the increased use of email.
This About.com page has been optimized for print. To view this page in its original form, please visit: http://usgovinfo.about.com/od/consumerawareness/a/uspsabout.htm
©2011 About.com, Inc., a part of The New York Times Company. All rights reserved.
--------------------------------------------------------------------------------
Links in this article:
1.http://www.usps.com/welcome.htm?from=global_header&page=homepage
2.http://www.usps.com/postalhistory/welcome.htm
3.http://www.prc.gov/prc-pages/default.aspx
4.http://www.usps.com/communications/newsroom/bog.htm
5.http://www4.law.cornell.edu/uscode/39/101.html
6.http://www4.law.cornell.edu/uscode/39/101.html
7.http://www4.law.cornell.edu/uscode/39/401.html
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LMFAO by total revenue do you mean during its history of existence straw?
hahahaha you have a weird twisted way of looking at a lot of shit broham.....
fact is the post office has been doing shit for years now and they do borrow money from the tax payers in addition to the money they get for free every year from the tax payers...
but hey "they are doing just fine" arent they?
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LMFAO by total revenue do you mean during its history of existence straw?
hahahaha you have a weird twisted way of looking at a lot of shit broham.....
fact is the post office has been doing shit for years now and they do borrow money from the tax payers in addition to the money they get for free every year from the tax payers...
but hey "they are doing just fine" arent they?
what you are referring to specifically
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LMFAO by total revenue do you mean during its history of existence straw?
hahahaha you have a weird twisted way of looking at a lot of shit broham.....
fact is the post office has been doing shit for years now and they do borrow money from the tax payers in addition to the money they get for free every year from the tax payers...but hey "they are doing just fine" arent they?
what money do you think they are getting for free?
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what you are referring to specifically
I was referring to the edit you made to take it out...
lol nice though...you said something along the lines of the money they take(which is in the millinos) pales in comparison to their total revenue...
which is now wisely taken down LOL :)
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I was referring to the edit you made to take it out...
lol nice though...you said something along the lines of the money they take(which is in the millinos) pales in comparison to their total revenue...
which is now wisely taken down LOL :)
you mean the 96 million from the postal service fund?
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you mean the 96 million from the postal service fund?
LOL ive played this game with you straw i answer yours you run away, side step and never answer mine....
answer mine first seeing as i asked first brain child ;)
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LOL ive played this game with you straw i answer yours you run away, side step and never answer mine....
answer mine first seeing as i asked first brain child ;)
yeah - I don't have much time today to play on your retarded merry go round so I'll try to get it all in one post
the 96 million they receive is not for free - go back and look at my post and you'll see what services they provide for that money
That money represents about 1 tenth of 1 % of their total revenue (96 000 000 / 68 000 000 000 = 0.00141176471)
One of the major financial challenges facing the postal service is the same one that is facing our cities, federal government and large business......namely defined benefit pensions. There is no way to budget to pay retired employees 80% of their salary for the rest of their life.
Finally, the post office is mandated to be revenue neutral. I say let them make a profit and see how quickly some of their problems go away (the pension problem will still be there regardless)
feel free to respond to all or none ........makes no difference to me either way
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yeah - I don't have much time today to play on your retarded merry go round so I'll try to get it all in one post
the 96 million they receive is not for free - go back and look at my post and you'll see what services they provide for that money
That money represents about 1 tenth of 1 % of their total revenue (96 000 000 / 68 000 000 000 = 0.00141176471)
One of the major financial challenges facing the postal service is the same one that is facing our cities, federal government and large business......namely defined benefit pensions. There is no way to budget to pay retired employees 80% of their salary for the rest of their life.
Finally, the post office is mandated to be revenue neutral. I say let them make a profit and see how quickly some of their problems go away (the pension problem will still be there regardless)
feel free to respond to all or none ........makes no difference to me either way
lol the 96 million is free no where in your post does it say they have to pay it back...
so they make 68 billion a year? please quote that in your post...
of course they are supposed to be revenue nuetral you ignorant bastard otherwise the government would be able to drive private business out...you do understand that right?
the fact of the matter is though that they have lost money for years and years now
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lol the 96 million is free no where in your post does it say they have to pay it back...
so they make 68 billion a year? please quote that in your post...
of course they are supposed to be revenue nuetral you ignorant bastard otherwise the government would be able to drive private business out...you do understand that right?
the fact of the matter is though that they have lost money for years and years now
you must have a different defintion of free than the rest of the word
they receive those funds and provide a service
The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.
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you must have a different defintion of free than the rest of the word
they receive those funds and provide a service
The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.
LMAO those are part of their operations brain child...
does UPS or FEDEX get free money from the govt to help cover part of their operations expenses?
LOL does the USPS pay the money back? well then its free isnt it?
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LMAO those are part of their operations brain child...
does UPS or FEDEX get free money from the govt to help cover part of their operations expenses?
LOL does the USPS pay the money back? well then its free isnt it?
are you seriously this dumb
I know you don't understand the definition of the word "free" but how about the definition of the word "compensate"
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are you seriously this dumb
I know you don't understand the definition of the word "free" but how about the definition of the word "compensate"
do you know what operation expenses are?
that is part of the operations of the USPS...
does UPS or FEDEX get money to help cover their operations expenses?
LOL
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do you know what operation expenses are?
that is part of the operations of the USPS...
does UPS or FEDEX get money to help cover their operations expenses?
LOL
let's make a deal
you can continue to believe they are getting something for free (i.e. providing no service) and I will continue to not give a shit if you think that
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let's make a deal
you can continue to believe they are getting something for free (i.e. providing no service) and I will continue to not give a shit if you think that
LOL sure bro, youre in finance and dont understand operation expenses...that is part of what they are supposed to do in the line of their business...
does FEDEX and UPS get money to help cover part of what they are supposed to do in the line of their business?
the USPS also gets to borrow money against the tax payer at discounted rates...this is one of the only reasons they are able to stay solvent despite the year after year of million dollar loses...
LOL sorry hoss
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LOL sure bro, youre in finance and dont understand operation expenses...that is part of what they are supposed to do in the line of their business...
does FEDEX and UPS get money to help cover part of what they are supposed to do in the line of their business?
the USPS also gets to borrow money against the tax payer at discounted rates...this is one of the only reasons they are able to stay solvent despite the year after year of million dollar loses...
LOL sorry hoss
the truly miniscule amount of money provided by postal servcie funds is compensation for service rendered
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the truly miniscule amount of money provided by postal servcie funds is compensation for service rendered
yes in return for a service that is part of their business...
does FedEx or UPS get money from the govt for doing something that they are supposed to do in line with part of their business?
does FedEx or UPS get to borrow money against the tax payer at discounted rates to help prop them up in the face of year after year of million dollar loses?
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yes in return for a service that is part of their business...
does FedEx or UPS get money from the govt for doing something that they are supposed to do in line with part of their business?
does FedEx or UPS get to borrow money against the tax payer at discounted rates to help prop them up in the face of year after year of million dollar loses?
why do you keep saying this
how is it "part of their business" to provide a service for free?
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why do you keep saying this
how is it "part of their business" to provide a service for free?
LOL b/c its part of their BUSINESS!!!!!!
so anytime a business does something for free in the line of their duties they get money from the govt?
LOL just b/c they do it for free doesnt mean its not in line with their BUSINESSS!!!!!!!!
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LOL b/c its part of their BUSINESS!!!!!!
so anytime a business does something for free in the line of their duties they get money from the govt?
LOL just b/c they do it for free doesnt mean its not in line with their BUSINESSS!!!!!!!!
you've said that many times
how do you arrive at the conclusion that it's part of therir business to provide a free service?
why should they provide free postage to legally blind people as "part of their business" or why should they free postage for mail in ballots from people living abroad?
Are they a charity organization?
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you've said that many times
how do you arrive at the conclusion that it's part of therir business to provide a free service?
why should they provide free postage to legally blind people as "part of their business" or why should they free postage for mail in ballots from people living abroad?
Are they a charity organization?
LOL b/c like any business those who control it deem it part of their business...
do any private businesses get money to compensate them for the things they do for free?
do any private businesses get to borrow money from the tax payers at discount rates to make up for year after year of running in the red?
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LOL b/c like any business those who control it deem it part of their business...
I have no idea why you're still arguing this point or what point you're even trying to make.
The Federal goverenment provides a tiny amount of money to compensate the post office for providing specific services.
do any private businesses get money to compensate them for the things they do for free?
you tell me. I don't even know what "issue" you're trying to argue at this point
do any private businesses get to borrow money from the tax payers at discount rates to make up for year after year of running in the red?
banks, auto companies, are two examples that come to mind
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Ha ha - I have never run in the red once. I guess I have to pay the rip off rate instead of the discount rate if I want to borrow money. ;D
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Postal Service to Begin Closing Plants This Summer
Thursday, 17 May 2012
The nearly bankrupt U.S. Postal Service is moving ahead with plans to close dozens of mail processing centers, saying it can no longer wait for Congress to decide how to cut postal costs.
Postmaster General Patrick Donahoe says postal operations are simply too big given declining mail volume. The agency will consolidate 140 mail processing centers within the next year, including 48 this August. Most will occur next January and February, after the busy election and holiday mail season.
Another 89 closings would occur in 2014.
The Postal Service had previously planned to close 252 mail processing centers beginning this summer but was awaiting congressional action.
With Congress stalled over a bill, the mail agency say it is moving forward, but now over a longer timeframe.
http://www.newsmax.com/Newsfront/Posta-service-closing-centers/2012/05/17/id/439415
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LOL!!
That is a disaster.
Yeah, lets trust the government with the responsibility of handling health care insurance.
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Postal Service offers buyouts, with $15K incentive in latest cost-cutting plan
Published May 26, 2012
FoxNews.com
The U.S. Postal Service announced late Friday it would offer thousands of mail-handlers a $15,000 incentive to retire early, the most recent attempt by the financially-strapped agency to cut costs and stay open for business.
The voluntary offer was extended to roughly 45,000 full-time union employees. It is part of the agency’s larger plan to cut its workforce by 150,000 over the next three years and close hundreds of mail-procession centers.
Postal officials said such changes are necessary as a result of the recession and because Americans continue to pay bills and perform other, similar tasks online, instead of doing them through the mail.
Officials said 60 percent of Americans now pay their bills online, compared to just 5 percent in 2000. They also said mail volume peaked at 213 billion in 2006, but has since plummeted by more than 25 percent.
Official also have said the congressional mandate to pre-fund retirement health care benefits has contributed to financial problems.
The agency reportedly lost more than $6 billion in the first two quarters of fiscal 2012.
Eligible employees must decide by July and leave in August. Those who accept the offer will receive the money in two installments – December 2012 and December 2013.
A similar, pro-rated deal is being offered to many part-time employees. Handlers perform such tasks as sorting mail in processing centers as well as loading and unloading trucks.
The National Postal Mail Handlers Union said the deal is "intended to provide a financial cushion and added peace of mind for mail handlers who might be prepared to move on to the next chapter of their lives."
The agency also wanted to close some low-volume rural post offices to save money, but announced earlier this month, amid public outcry, to instead reduce hours of operation.
http://www.foxnews.com/politics/2012/05/26/postal-service-offers-buyouts-with-15k-incentive-in-latest-cost-cutting-plan/
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Why do blind people get free postage?
???
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Why do blind people get free postage?
???
Obama hasn't given them their free laptop, free internet access, and free email yet?
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Obama hasn't given them their free laptop, free internet access, and free email yet?
Maybe!!! haha
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Post Office might miss retirees' payment, as first ever default looms
Published July 19, 2012
The Wall Street Journal
While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency's money problems are only growing worse.
The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess.
The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers. But "these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers," said spokesman David Partenheimer.
The agency says it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then.
Most everyone agrees the Postal Service needs an overhaul. It had a loss of $3.2 billion in the second quarter of this fiscal year; it is to report third-quarter results on Aug. 9. The agency blames factors including declining mail volumes and the unusual 2006 mandate by Congress that it annually set aside billions for future retirees. But while the Senate has passed legislation to overhaul the agency, the House says it doesn't expect to take up its own proposal until after August.
Click for more from The Wall Street Journal.
http://www.foxnews.com/politics/2012/07/19/post-office-might-miss-retirees-payment-as-first-ever-default-looms/?intcmp=trending
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Post Office Nears Historic Default on $5B Payment
Monday, 30 Jul 2012
The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.
With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.
The defaults won't stir any kind of catastrophe in day-to-day mail service. Post offices will stay open, mail trucks will run, employees will get paid, current retirees will get health benefits.
But a growing chorus of analysts, labor unions and business customers are troubled by continuing losses that point to deeper, longer-term financial damage, as the mail agency finds it increasingly preoccupied with staving off immediate bankruptcy while Congress delays on a postal overhaul bill.
Postmaster General Patrick Donahoe has described a "crisis of confidence" amid the mounting red ink that could lead even once-loyal customers to abandon use of the mail.
"I think for my generation it was a great asset — if you had a letter or package and you needed it to get up to the North Pole, you knew it would be delivered," said Jim Husa, 87, of Lawrence, Mich., after stopping to mail letters recently at his local post office. Noting the mail agency's financial woes, he added: "Times have changed, and we old-timers know that. FedEx and UPS and the Internet seem to be making the Postal Service obsolete."
Banks are promoting electronic payments, citing in part the growing uncertainty of postal mail. The federal government will stop mailing paper checks starting next year for millions of people who receive Social Security and other benefits, paying via direct deposit or debit cards instead.
First-class mail volume, which has fallen 25 percent since 2006, is projected to drop another 30 percent by 2016.
Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service, a group representing the private-sector mailing industry, said the payment defaults couldn't come at a worse time, as many major and mid-sized mailers are preparing their budgets for next year.
"The impact of the postal default may not be seen by the public, but it will be felt by the business community," he said. "Mailers will be increasingly wary about the stability of the Postal Service. The logical and likely move would be to divert more mail out of the system."
The Postal Service, an independent agency of government, does not receive taxpayer money for operations but it is subject to congressional control. It estimates that it is now losing $25 million a day, which includes projected savings it had expected to be accruing by now if Congress this spring had approved its five-year profitability plan. That plan would cut Saturday delivery, reduce low-volume postal facilities and end its obligation to pay more than $5 billion each year for future retiree health payments.
While the Senate passed a bill in April that provides an $11 billion cash infusion to help the mail agency avert a default, it also would delay many of the planned postal cuts for another year or two. The House remains stalled over a measure that allows for the aggressive cuts the Postal Service prefers; that's unlikely to move forward this year, partly due to concerns among rural lawmakers over cutbacks in their communities.
The Postal Service originally sought to close low-revenue post offices in rural areas to save money but after public opposition agreed to keep 13,000 open with shorter operating hours. The Postal Service also is delaying the closing of many mail processing centers, originally set to begin this spring. The estimated annual savings of $2.1 billion won't be realized until the full cuts are completed in late 2014.
The postal uncertainty offers opportunities for banks, which can save up to one-third of the cost of processing checks if payments are made electronically. JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. have been urging electronic transactions.
"This could be a watershed event to motivate consumers and businesses to stop writing checks," said Rodney Gardner, head of global receivables at Bank of America, who recently reviewed the topic at a conference with insurance companies.
The Postal Service, which releases third-quarter financial results next week, has projected a record $14.1 billion loss for the year. It expects to avoid bankruptcy in October only by defaulting on the two health prepayments, totaling $11.1 billion. It faces a cash crunch again next year.
Fredric Rolando, president of the National Association of Letter Carriers, notes that the onerous health payment for future retirees — something not required of any other government agency or private business — is to blame for much of the post office's red ink. He faults Congress for mandating the payments in 2006, saying they force the post office every year into a "panic mode that absorbs energy and resources" rather than focusing on longer-term innovation.
"The word 'default' sounds ominous, but in reality this is a default on the part of Congress," Rolando said.
In 2007 and 2008, the Postal Service initially had profits of roughly $3 billion but fell into the red after making the health payments. In more recent years, it has suffered annual losses of $2 billion to $5 billion even after factoring out the health payments; by 2016, the mail agency expects to lose $21.3 billion a year, of which $5.8 billion will be caused by that payment.
Peter Nesvold, a financial analyst with Jefferies and Co., says the post office's financial future will depend on how Congress resolves its conflict over the mail agency's core mission. While the Postal Service is a business expected to stay afloat, it also has a legal obligation to provide uniform first-class mail service even to sparsely populated, far-flung areas of the U.S., all for the same price of a 45-cent postage stamp. UPS and FedEx don't deliver to those areas that are less profitable, contracting with the Postal Service to get the job done.
Last year, first-class mail contributed to 49 percent of the Postal Service's total revenue; by 2016, that share will drop to 41 percent. The mail agency has been seeking to pick up the slack by promoting its fast-growing package business as a cheaper alternative to FedEx and UPS, as well as encouraging more use of "standard mail," which are advertising circulars and catalogs often referred to as "junk mail."
Linda Graham, a postmaster in Hope, Alaska, says she understands the Postal Service's financial dilemma. Her rural postal branch may see its hours reduced from eight to four hours a day. "I feel that right now the post office is really grasping to try to make things work. I mean, they're losing money," she said.
Graham acknowledges her postal branch could probably get by if it were open just 6 hours a day, but believes that a bigger cut would be "suicide" for the town because of the role it plays as a community gathering place. "That's a real concern. So I just tell people, write more letters, buy more stamps," she said.
http://www.newsmax.com/US/PostalProblems/2012/07/30/id/447018
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Post Office Nears Historic Default on $5B Payment
Monday, 30 Jul 2012
The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.
With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.
The defaults won't stir any kind of catastrophe in day-to-day mail service. Post offices will stay open, mail trucks will run, employees will get paid, current retirees will get health benefits.
But a growing chorus of analysts, labor unions and business customers are troubled by continuing losses that point to deeper, longer-term financial damage, as the mail agency finds it increasingly preoccupied with staving off immediate bankruptcy while Congress delays on a postal overhaul bill.
Postmaster General Patrick Donahoe has described a "crisis of confidence" amid the mounting red ink that could lead even once-loyal customers to abandon use of the mail.
"I think for my generation it was a great asset — if you had a letter or package and you needed it to get up to the North Pole, you knew it would be delivered," said Jim Husa, 87, of Lawrence, Mich., after stopping to mail letters recently at his local post office. Noting the mail agency's financial woes, he added: "Times have changed, and we old-timers know that. FedEx and UPS and the Internet seem to be making the Postal Service obsolete."
Banks are promoting electronic payments, citing in part the growing uncertainty of postal mail. The federal government will stop mailing paper checks starting next year for millions of people who receive Social Security and other benefits, paying via direct deposit or debit cards instead.
First-class mail volume, which has fallen 25 percent since 2006, is projected to drop another 30 percent by 2016.
Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service, a group representing the private-sector mailing industry, said the payment defaults couldn't come at a worse time, as many major and mid-sized mailers are preparing their budgets for next year.
"The impact of the postal default may not be seen by the public, but it will be felt by the business community," he said. "Mailers will be increasingly wary about the stability of the Postal Service. The logical and likely move would be to divert more mail out of the system."
The Postal Service, an independent agency of government, does not receive taxpayer money for operations but it is subject to congressional control. It estimates that it is now losing $25 million a day, which includes projected savings it had expected to be accruing by now if Congress this spring had approved its five-year profitability plan. That plan would cut Saturday delivery, reduce low-volume postal facilities and end its obligation to pay more than $5 billion each year for future retiree health payments.
While the Senate passed a bill in April that provides an $11 billion cash infusion to help the mail agency avert a default, it also would delay many of the planned postal cuts for another year or two. The House remains stalled over a measure that allows for the aggressive cuts the Postal Service prefers; that's unlikely to move forward this year, partly due to concerns among rural lawmakers over cutbacks in their communities.
The Postal Service originally sought to close low-revenue post offices in rural areas to save money but after public opposition agreed to keep 13,000 open with shorter operating hours. The Postal Service also is delaying the closing of many mail processing centers, originally set to begin this spring. The estimated annual savings of $2.1 billion won't be realized until the full cuts are completed in late 2014.
The postal uncertainty offers opportunities for banks, which can save up to one-third of the cost of processing checks if payments are made electronically. JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. have been urging electronic transactions.
"This could be a watershed event to motivate consumers and businesses to stop writing checks," said Rodney Gardner, head of global receivables at Bank of America, who recently reviewed the topic at a conference with insurance companies.
The Postal Service, which releases third-quarter financial results next week, has projected a record $14.1 billion loss for the year. It expects to avoid bankruptcy in October only by defaulting on the two health prepayments, totaling $11.1 billion. It faces a cash crunch again next year.
Fredric Rolando, president of the National Association of Letter Carriers, notes that the onerous health payment for future retirees — something not required of any other government agency or private business — is to blame for much of the post office's red ink. He faults Congress for mandating the payments in 2006, saying they force the post office every year into a "panic mode that absorbs energy and resources" rather than focusing on longer-term innovation.
"The word 'default' sounds ominous, but in reality this is a default on the part of Congress," Rolando said.
In 2007 and 2008, the Postal Service initially had profits of roughly $3 billion but fell into the red after making the health payments. In more recent years, it has suffered annual losses of $2 billion to $5 billion even after factoring out the health payments; by 2016, the mail agency expects to lose $21.3 billion a year, of which $5.8 billion will be caused by that payment.
Peter Nesvold, a financial analyst with Jefferies and Co., says the post office's financial future will depend on how Congress resolves its conflict over the mail agency's core mission. While the Postal Service is a business expected to stay afloat, it also has a legal obligation to provide uniform first-class mail service even to sparsely populated, far-flung areas of the U.S., all for the same price of a 45-cent postage stamp. UPS and FedEx don't deliver to those areas that are less profitable, contracting with the Postal Service to get the job done.
Last year, first-class mail contributed to 49 percent of the Postal Service's total revenue; by 2016, that share will drop to 41 percent. The mail agency has been seeking to pick up the slack by promoting its fast-growing package business as a cheaper alternative to FedEx and UPS, as well as encouraging more use of "standard mail," which are advertising circulars and catalogs often referred to as "junk mail."
Linda Graham, a postmaster in Hope, Alaska, says she understands the Postal Service's financial dilemma. Her rural postal branch may see its hours reduced from eight to four hours a day. "I feel that right now the post office is really grasping to try to make things work. I mean, they're losing money," she said.
Graham acknowledges her postal branch could probably get by if it were open just 6 hours a day, but believes that a bigger cut would be "suicide" for the town because of the role it plays as a community gathering place. "That's a real concern. So I just tell people, write more letters, buy more stamps," she said.
http://www.newsmax.com/US/PostalProblems/2012/07/30/id/447018
phony crisis manufactured by congress
simple fix is to reverse the unnecessary 2006 legislation
no other government agency or even private company is required to prefund insurance costs 75 years into the future
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Postal Service future in question after first-ever default, lawmakers stuck on a deal
Published August 03, 2012
FoxNews.com
Add the Postal Service to the list of problems Congress is so far unable to fix.
America's mail service endured its first-ever default overnight, failing to submit a required $5.5 billion payment for future retirees' health benefits by Thursday.
The unprecedented lapse prompted new questions about the fate of the Postal Service as its financial situation spirals ever out of control, and Capitol Hill lawmakers have started a new round of fingerpointing after deadlocking over how to break the slide.
"Congress must act quickly in order to prevent the loss of thousands of jobs in the Postal Service and the American mailing industry," Rep. Steve Cohen, D-Tenn., said in a letter to House Speaker John Boehner.
The agency is expected to miss another $5.6 billion payment in September. For now, the missed mega-payments are not expected to affect day-to-day operations. An agency statement this week said the default would have "no material effect" on the Postal Service, affirming it would continue to deliver mail and pay employees as usual.
But the default again raises questions about whether taxpayers will eventually need to step in to save an agency that historically has gotten by without taxpayer support, even though it is subject to congressional oversight.
That oversight has complicated the agency's efforts to overhaul itself. As it loses roughly $25 million a day, the agency has rolled out a plan to cut Saturday delivery, reduce low-volume postal facilities and end its obligation to pay the future retiree health payments.
The House and Senate each have taken a different approach to that plan.
While the Senate passed a bill in April that provides an $11 billion cash infusion to help the mail agency avert a default, it also would delay many of the planned postal cuts for another year or two. The House remains stalled over a measure that allows for the aggressive cuts the Postal Service prefers, in large part due to concerns among rural lawmakers over cutbacks in their communities.
The Postal Service originally sought to close low-revenue post offices in rural areas to save money, but after public opposition it agreed to keep 13,000 open with shorter operating hours. The Postal Service also is delaying the closing of many mail processing centers, originally set to begin this spring. The estimated annual savings of $2.1 billion won't be realized until the full cuts are completed in late 2014.
Senate Democrats have urged the House to act quickly so that the two chambers can iron out the differences between their two bills. The House, though, is not expected to act until September or later.
Asked about the possibility of action on the Postal Service next month, Boehner said, "there will be a lot of conversations over the next five or six weeks" on what the House can fit into its "limited" schedule.
"The postal legislation, there's a lot of conversation about it, but, you know, these missed payments are not going to affect the ability of the post office to do its job," Boehner said.
House Democratic Leader Nancy Pelosi claimed that Republicans have "shown no interest in offering meaningful solutions."
Postmaster General Patrick Donahoe has described a "crisis of confidence" amid the mounting red ink that could lead even once-loyal customers to abandon use of the mail.
Banks are promoting electronic payments, citing in part the growing uncertainty of postal mail. The federal government will stop mailing paper checks starting next year for millions of people who receive Social Security and other benefits, paying via direct deposit or debit cards instead.
First-class mail volume, which has fallen 25 percent since 2006, is projected to drop another 30 percent by 2016.
http://www.foxnews.com/politics/2012/08/03/economy-adds-163000-jobs-in-july-unemployment-rate-rises-to-83-percent/
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Postal Service defaults on $5.6B retiree pre-payment
October 1. 2012 - Because of congressional inaction, the U.S. Postal Service today defaulted on a $5.6 billion pre-payment for future retiree health benefits, the second such default in two months.
The Postal Service missed a $5.5 billion payment in August, bringing the missed pre-payments to $11.1 billion for the fiscal year that ended Sunday. Overall, the postal service expected a $15 billion deficit for last year, and a projected shortfall of $238 billion over the next 10 years.
Congress mandated the early funding in 2006. No other government agency or private business is required to make such over-payments.
Despite the defaults, "customers can be confident in the continued regular operations," Postmaster General Patrick Donahoe said in a statement.
"We will continue to deliver the mail and pay our employees and suppliers. Postal Service retirees and employees will also continue to receive their health benefits," Donahone said, noting that current retirees' health care is paid from the agency's general operating budget.
"Comprehensive reform of the laws governing the Postal Service is urgently needed in order for the Postal Service to fully implement its five-year business plan and return to long-term financial stability," Donahoe said.
Facing declining mail volume, the Postal Service has proposed several sweeping measures to reduce losses, including ending Saturday delivery, closing mail handling centers, reducing staffing, cutting local post office hours and starting new shipping services to compete with UPS and Fedex.
The Senate has passed legislation to restructure the Postal Service that would allow it to tap into its retiree overpayments, allow some proposed changes, but not eliminate Saturday delivery. (Read a summary.) The House has declined to act on similar bills. Congress recessed last month until after the November election.
A spokeswoman for House Majority Leader Eric Cantor, R-Va., would not comment last week on whether the lame-duck session would take up postal-restructuring, says the Federal Times, published by Gannett, USDA TODAY's parent.
In reporting today's default, Government Executive writes, "Congress has punted on the question of a solution until after the election. Expect Congress to fight Postal Service efforts to put ending Saturday delivery on the table as well as closing many rural post offices." The four postal unions are also challenging proposals to shutter processing centers or reduce post office hours, and to end no-layoff guarantees in future contracts.
Before the August default, one of the unions, the National Association of Letter Carriers, noted in a press release that the Postal Service "already has $45 billion set aside for future retiree health benefits – more than any other organization in America – and yet Congress wants to drain still more from the USPS."
http://www.usatoday.com/story/ondeadline/2012/10/01/postal-service-default-retiree-health-benefits/1606815/
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U.S. Postal Service on a ‘Tightrope’ Lost $15.9 Billion
By Angela Greiling Keane - Nov 15, 2012
The U.S. Postal Service said its net loss last year widened to $15.9 billion, more than the $15 billion it had projected, as mail volume continued to drop, falling 5 percent.
Without action by Congress, the service will run out of cash on Oct. 15, 2013, after it makes a required workers compensation payment to the U.S. Labor Department and before revenue typically jumps with holiday-season mailing, Chief Financial Officer Joe Corbett said today.
The service, whose fiscal year ends Sept. 30, lost $5.1 billion a year earlier. It announced the 2012 net loss at a meeting at its Washington headquarters.
“We are walking a financial tightrope,” Postmaster General Patrick Donahoe said at the meeting. “Will we ever stop delivering the mail? It will never happen. We are simply too important to the economy and the flow of commerce.”
The Postal Service uses about $250 million a day to operate and will have less than four days of cash on hand by the end of the fiscal year, Corbett said.
The service is asking Congress to enact legislation before it adjourns this year that would allow the Postal Service to spread future retirees’ health-benefit payments over more years, stop Saturday mail delivery, and more easily close post offices and processing plants.
Over Edge
“The Postal Service is facing a fiscal cliff of its own and any unanticipated drop in mail volumes could send the agency over the edge,” said Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service, whose members include Bank of America Corp. and EBay Inc. (EBAY) “If Congress fails to act, there could be postal slowdowns or shutdowns that would have catastrophic consequences for the 8 million private sector workers whose jobs depend on the mail.”
Without legislative change, the service expects its losses to continue in 2013, with a forecast loss of $7.6 billion for the year that started Oct. 1, Corbett said.
“There is no margin of error,” given the low level of cash, he said.
The service is trying to cut costs by giving retirement- eligible workers a financial incentive to retire. Those employees have a Dec. 3 deadline to accept the offer, with $200 million budgeted for the incentive costs in fiscal 2013.
Health Benefits
Next year’s loss forecast includes a $5.6 billion payment due to the U.S. Treasury for future retiree health benefits, Corbett told reporters after the meeting. The 2012 loss includes the $5.6 billion payment to the fund that the service defaulted on Sept. 30, and the previous year’s $5.5 billion obligation that was due Aug. 1 and also not paid. Because that year’s payment was deferred, the 2011 loss doesn’t include any pre- funding amount.
Mail volume for the year fell to 159.9 billion pieces, led by an 8 percent decrease in single-piece first-class items, the most profitable kind of mail that includes letters, cards and bill payments.
Operating revenue fell less than 1 percent to $65.2 billion for the year as the service cut work hours while delivering less mail.
The service’s outlook worsened this week, when the U.S. Office of Personnel Management said the service’s projected surplus in a government-worker retirement account has fallen to $2.6 billion, less than one-quarter of the previous year’s estimate, due to lower interest rates. It found another retirement account now has a $17.8 billion shortfall instead of a previously estimated surplus. The service has proposed tapping the surpluses to help cover its losses.
“Relying on a temporary, projected surplus to keep USPS solvent is a risk no matter which set of assumptions OPM is directed to use,” said Ali Ahmad, a spokesman for House Government and Reform Committee Chairman Darrel Issa, a California Republican who is a sponsor of a postal overhaul measure pending in the House. “It is no substitute for the actual cost-cutting USPS needs to do to find real savings.”
http://www.bloomberg.com/news/2012-11-15/u-s-postal-service-on-tightrope-loses-15-9-billion.html
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Postmaster General: Post Office Losing $25 Million Every Day
Monday, 28 Jan 2013
The price of a first-class stamp rose a penny on Sunday, to 46 cents, but the U.S. Postal Service is still operating at a deficit.
“We are currently losing $25 million per day,” Postmaster General Patrick Donahoe said this month, according to NBC News. Last fiscal year, the agency lost nearly $16 billion — and it no longer has a line of credit with the U.S. Treasury Department.
The Postal Service could run out of money “between six months and a year at most,” if Congress does not act, Richard Geddes, associate professor of policy analysis and management at Cornell University, told NBC.
The Postal Service said keeping letters moving is its top priority, even if it means defaulting on its retirement benefit funds again.
“Although our liquidity situation remains a serious concern, the Postal Service is continuing to prioritize payments to ensure employees and suppliers are paid on time, preventing any interruption in our operations,” spokesman David Partenheimer, told NBC.
Still, Michael Crew, director of the Center for Research in Regulated Industries, and professor of regulatory economics at Rutgers University, told NBC: “There could be a period when mail is not being delivered.”
The Postal Service delivers mail six days a week to everyone in the nation who has been sent mail, and maintains as many as 32,000 post offices.
The post office wants to eliminate Saturday delivery, which Partenheimer said would save $2.7 billion a year, but it needs congressional approval to do so.
Congress has not granted that authority.
“Essentially, Congress has got to rethink the legislation that establishes the post office,” Campbell told NBC.
http://www.newsmax.com/US/post-office-losing-25/2013/01/28/id/487783
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.50 cent stamp on the way
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I like the post office, but it is in financial ruin. The Constitutionally mandated Post Office needs to be run more efficiently or spending needs to be cut elsewhere to ensure that it is solvent.
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I like the post office, but it is in financial ruin. The Constitutionally mandated Post Office needs to be run more efficiently or spending needs to be cut elsewhere to ensure that it is solvent.
Would it not be possible to contract this out to a company like FedEx? ???
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Would it not be possible to contract this out to a company like FedEx? ???
Not for the price that we currently pay for mail. Ask FedEx to deliver a letter from California to Arizona in 2 days for $0.45 and it will give you the finger.
The problem isn't that the post office is horribly inefficient – although I'm sure there are efficiency gains to be had. The problem is that the post office looks like a company, sounds like a company and even smells like a company but it's not a company. It is basically run by Congress and management can't actually manage or make decisions.
They have to make massive payments to prefund pensions and health insurance. They must charge a flat rate regardless of whether you're sending mail from California to Nevada or California to New York. They must visit every mailbox in the country six days a week, even if they don't have mail to deliver. And so on...
The Post Office can thrive, even in the era of e-mail. Hell, just Amazon's shipping volume could be enough to get them out of the hole if they were allowed to offer shipping services that made sense. In other words if they were allowed to operate more freely instead of having to jump whenever a politician in Congress feels gassy.
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HEHEHEHHE!!
The federal government can't even run the post office efficiently. It has driven Social Security to bankruptcy. Medicaid is on its way.
But, somehow, a lot of people believe that they should be in charge of healthcare and immigration.
HEHEHEHEH!! This nation deserves every bit of economic agony for being so stupid in re-electing the same idiot in chief.
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HEHEHEHHE!!
The federal government can't even run the post office efficiently. It has driven Social Security to bankruptcy. Medicaid is on its way.
But, somehow, a lot of people believe that they should be in charge of healthcare and immigration.
HEHEHEHEH!! This nation deserves every bit of economic agony for being so stupid in re-electing the same idiot in chief.
And just out of curiosity, who should be in charge of immigration troll?
As for deserving every bit of agony for reelecting Obama, it's funny that you think things would be any different if Romney was elected instead. It shows just how naïve and blindly partisan you are.
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Would it not be possible to contract this out to a company like FedEx? ???
FedEx is a racket and overly priced. The Post Office is as Constitutional as the Right To Bear Arms is and should be preserved.
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Article I, Section 8, Clause 7 of the United States Constitution, known as the Postal Clause or the Postal Power, empowers Congress "To establish Post Offices and post Roads".
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Article I, Section 8, Clause 7 of the United States Constitution, known as the Postal Clause or the Postal Power, empowers Congress "To establish Post Offices and post Roads".
To establish. Not to be completely clueless on how to run it.
While your at it. Give us the Article, Section and Clause where government has the power to enforce health care.
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To establish. Not to be completely clueless on how to run it.
While your at it. Give us the Article, Section and Clause where government has the power to enforce health care.
I agree, they need to cut spending elsewhere in order to keep the Post Office solvent. I don`t support Obamacare and do not like it one bit. There is nowhere in the Constitution that supports Obamacare unless its considered a tax, but even that is arguable and in my opinion wrong.
The Post Office, however, is in the Constitution.
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Postal Service To Cut Saturday Mail Delivery To Save $2 Billion Per Year
By PAULINE JELINEK 02/06/13
WASHINGTON — The financially struggling U.S. Postal Service said Wednesday it will stop delivering mail on Saturdays but continue to disburse packages six days a week, an apparent end-run around an unaccommodating Congress.
The service expects the Saturday mail cutback to begin the week of Aug. 5 and to save about $2 billion annually, said Postmaster General and CEO Patrick R. Donahoe.
"Our financial condition is urgent," Donahoe told a press conference.
The move accentuates one of the agency's strong points – package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services.
Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays.
Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages – and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control.
Congress has included a ban on five-day delivery in its appropriations bill. But because the federal government is now operating under a temporary spending measure, rather than an appropriations bill, Donahoe says it's the agency's interpretation that it can make the change itself.
"This is not like a `gotcha' or anything like that," he said. The agency is essentially asking Congress not to reimpose the ban when the spending measure expires on March 27 and he said he would work with Congress on the issue.
The agency clearly thinks it has a majority of the American public on its side regarding the change.
Postal Service market research and other research indicated that nearly 7 in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs, the agency said.
"The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Donahoe said. "We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings."
But the president of the National Association of Letter Carriers, Fredric Rolando, said the end of Saturday mail delivery is "a disastrous idea that would have a profoundly negative effect on the Postal Service and on millions of customers," particularly businesses, rural communities, the elderly, the disabled and others who depend on Saturday delivery for commerce and communication.
He said the maneuver by Donahoe to make the change "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery."
House Oversight and Government Reform Committee Chairman Darrell Issa, R-Calif., and Senate Homeland Security and Governmental Affairs Ranking Member Tom Coburn M.D., R-Okla., said in a joint statement that they had sent a letter to leaders of the House and Senate in support of the elimination of Saturday mail.
They called it "common-sense reform"
Others agreed the Postal Service had little choice.
"If the Congress of the United States refuses to take action to save the U.S. Postal Service, then the Postal Service will have to take action on its own," said corporate communications expert James S. O'Rourke, professor of management at the University of Notre Dame.
He said other action will be needed as well, such as shuttering smaller rural post offices and restructuring employee health care and pension costs.
"It's unclear whether the USPS has the legislative authority to take such actions on its own, but the alternative is the status quo until it is completely cash starved," O'Rourke said in a statement.
The Postal Service made the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, officials said.
Donahoe said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.
The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy.
The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand.
The agency's biggest problem – and the majority of the red ink in 2012 – was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.
The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have.
No other government agency is required to make such a payment for future medical benefits. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. So officials are moving ahead to accelerate their own plan for cost-cutting.
The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000 or by 28 percent, and has consolidated more than 200 mail processing locations, officials say.
http://www.huffingtonpost.com/2013/02/06/postal-service-saturday-mail_n_2629373.html
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This is a horrible idea and most likely, unconstitutional as Congress did not vote on this- Post Office is in the Constitution.
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With all of the technology and convenience at our disposal, why, in 2013, do we still have a dude going from house to house dropping off handfuls of paper in people's boxes?
The Post Office can still exist by simply sending out all mail in electronic form to someone's registered email account.
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With all of the technology and convenience at our disposal, why, in 2013, do we still have a dude going from house to house dropping off handfuls of paper in people's boxes?
The Post Office can still exist by simply sending out all mail in electronic form to someone's registered email account.
Packages are by far cheaper sent by USPS than any other service.
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Postal Service Saturday Delivery Cuts Set Up Fight With Unions, Democrats
Posted: 02/06/2013 1:32 pm EST | Updated: 02/06/2013 2:19 pm EST
WASHINGTON -- The announcement Wednesday by the U.S. Postal Service that it would end Saturday delivery of first-class letters has infuriated postal employee unions and set up a struggle with members of Congress, many of whom believe the agency doesn't have the authority to implement service cuts on its own.
The agency apparently expected as much. In defending the move at a press conference at Postal Service headquarters, Postmaster General Patrick Donahoe posed the question to himself that he knew was on many observers' minds.
"Is it legal?" Donahoe asked. "Yes, it is, in our opinion."
The Postal Service occupies a strange, quasi-governmental territory, where it operates much like a business but must nevertheless answer to congressional oversight. The legality of cutting delivery hinges on a continuing resolution issued for years by Congress, tying 6-day delivery to an annual reimbursement from the federal government for services already rendered.
Donahoe argued that the specific language of the continuing resolution does not prohibit the switch. Employee unions, for one, vehemently disagree, and are considering lawsuits that could prevent the agency from proceeding.
The National Association of Letter Carriers (NALC) union called for Donahoe's resignation on Wednesday. Fred Rolando, the union's president, said the move "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery," and the union said it was "exploring all legal and political options to block Donahoe’s gambit."
There are two possible paths for the Postal Service to cut back to five-day delivery: Either its unilateral move announced Wednesday holds up legally, or Congress paves the way for the switch by stripping out the 6-day delivery language when the current continuing resolution expires at the end of March.
Donahoe, who said the move would save $2 billion per year, appeared to hedge between these two possibilities.
"We think we're on good footing with this ... Our interpretation is that the language does not bind us to six-day," he said. But he added that, given the looming expiration of the current resolution, "there's plenty of time -- we can get it resolved by then. [Congress] can take out any language that prevents us from doing this."
In other words, the Postal Service is sending a strong signal to Congress about what it wants -- and it expects lawmakers to comply.
The Senate produced a bill last year that would have maintained Saturday delivery for at least two more years, then allowed the agency to explore ending it if it seemed financially necessary. In a statement Wednesday, Sen. Tom Carper (D-Del.), chairman of the committee overseeing the Postal Service, said he was "disappointed" by the move, though he qualified that disappointment.
"For nearly three decades, it has been the clear intent of Congress that the Postal Service provide most communities with six days of mail delivery," Carper said. "That said, I have long argued that Congress should reduce the number of service mandates it places on the Postal Service."
The announcement appears to have split some lawmakers along party lines in the House. Rep. Darrell Issa, whose Oversight committee presides over the agency, voiced his support for Donahoe's move on Wednesday, saying in a letter to House leadership that the move to five-day delivery was "common sense." He also urged lawmakers to pave the way for the move with its next continuing resolution.
"Democrats on the Hill are furious," said a Democratic lobbyist. "They feel blindsided."
A House oversight committee staffer clarified to HuffPost that, even if the language at issue isn't stripped out of the next resolution, Issa believes the Postal Service has the authority to make the switch unilaterally.
But Rep. Elijah Cummings (D-Md.), ranking Democrat on the Oversight committee, rebuked Donahoe for the move in a brief statement Wednesday.
"The issue of service delivery frequency should be addressed in that legislation rather than through arbitrary action by the Postal Service," he said.
Legality aside, Donahoe's announcement raises the question of whether moving to five-day delivery of first-class mail is the wise path for long-term survival. (Package delivery, which has been growing for the agency in recent years, will continue on Saturdays under Donahoe's proposal.)
Unions and a host of businesses that rely on the Postal Service have argued that the breadth of the agency's service is its strongest asset. Cutting back on delivery, they say, would diminish the agency's value and inevitably lead to a "death spiral." It would also disproportionately hurt elderly and rural Americans who rely more on the mail.
The announcement is "yet another death knell for the quality service provided by the U.S. Postal Service," said Jeanette Dwyer, president of the National Rural Letter Carriers’ Association. "To erode this service will undermine the Postal Service’s core mission and is completely unacceptable."
The agency has struggled with mounting losses in recent years, and defaulted on payments to the U.S. Treasury in 2012 for the first time in its history. But, for the most part, the agency's alarming red ink is not due to operational losses, but to financial requirements placed on it by lawmakers. In 2006, Congress passed legislation forcing the agency to pay $5.5 billion per year to fund health care for retirees years in advance.
Of the agency's $15.9 billion in losses last year, $11.1 billion of it stemmed from Congress's pre-funding mandates.
Donahoe said he plans to make his argument for the switch to Congress.
"Everyone knows it's the right thing to do," Donahoe said. "Part of my job is to make a very clear and concise argument in front of Congress that we're doing the right thing."
LMFAO @ these libs
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Postal Service Debt May Hit $45 Billion
Wednesday, 13 Feb 2013
The U.S. Postal Service, which lost $1.3 billion in its first quarter, said its debt could reach $45 billion by around 2017 if Congress doesn’t pass legislation allowing it to change its business model.
The post office, at a Senate Homeland Security and Governmental Affairs Committee hearing today, will ask for permission to run its own health plan for employees and retirees. Postmaster General Patrick Donahoe, in testimony prepared for the hearing, said the service could save as much as $7 billion a year through 2016 by taking its health coverage out of the U.S. government plan.
Donahoe last week said the service plans to end Saturday mail delivery in August even though an appropriations law first enacted in 1981 requires it to deliver mail six days a week.
The service has reached the $15 billion limit on what it’s allowed to borrow from the U.S. Treasury and defaulted last year on two payments due to the Treasury for future retiree health benefit costs.
http://www.newsmax.com/Newsfront/post-office-debt-45/2013/02/13/id/490218
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Post Office $5.6 Billion Default Raises Urgency of Reforms
Tuesday, 22 Oct 2013
By Jennifer G. Hickey
With Congress and the media focused on the government shutdown and how to avoid default on the national debt, little attention was directed toward the U.S. Postal Service which earlier this month defaulted on a required $5.6 billion payment for the healthcare of its future retirees.
The third default on the down-payment in just over a year underscores the necessity of much-needed reforms for the beleaguered Postal Service.
Rep. Darryl Issa of California told Newsmax that without "the freedom to realign its infrastructure and operations in line with the changing way Americans use mail, the agency will remain insolvent."
"Prolonged insolvency of USPS will result in a massive taxpayer bailout and ongoing subsidy, or a sudden disruption in mail service, or both," the California Republican said.
Just days before the default, USPS Board of Governors Chairman Mickey Barnett announced an increase in the price of stamps beginning in 2014, which he said was the result of USPS' "precarious financial condition" and the "uncertain path toward enactment of postal reform legislation."
It is not a new message from the USPS leadership. Postmaster General Patrick Donahoe has been vocal about the need for Congress to implement legislative reforms, including elimination of the annual prefunding payments, and its need for greater autonomy to manage its healthcare system.
Appearing before the Senate, Donahoe said the Postal Service was "in the midst of a financial disaster" due to the burden of an "outdated and inflexible business model."
Absent any flexibility to govern its own affairs, the Postal Service – which expects to end fiscal year 2013 with a loss of about $6 billion – has warned lawmakers it anticipates a government bailout of $50 billion will be needed in 2017.
Action on postal reforms looks unlikely this year, and "even the small reforms being proposed by Congress will only buy them a year or two," says James Gattuso of the Heritage Foundation.
Gattuso tells Newsmax that attributing USPS's losses to the recession or faulty accounting are merely ignoring the real problem, which is that the market for traditional mail is diminishing.
In an October research report, Gattuso notes that first-class mail volume has already plummeted 30 percent since 2007, and it may drop another 40 percent over the next seven years.
In addition to a decline in standard mail as a result of increased email communications, more Americans are paying bills online.
A Household Diary Study found that bill payments by mail have declined almost 16 percent in the past two years, while a 2012 study by the consulting firm Fiserv reports that 75 percent of Americans pay at least one monthly bill electronically.
The USPS has "to bite the bullet and make serious changes that include closing post offices that do not cover their costs or even make a profit. They also need to be open to considering partnerships with local businesses, such as CVS, so people would still have access to postal services, but not necessarily at a dedicated post office building," says Robert D. Atkinson of the Information Technology and Innovation Foundation.
Atkinson suggests the USPS should immediately move to a five-day or three-day delivery schedule and to identify underutilized post offices and postal sorting facilities for closure.
In a June report examining whether the postal service could survive in a digital age, Atkinson pointed to the fact that more than 21 percent of FedEx deliveries are dropped off by a USPS postal carrier. This burden sharing is known as "last mile" delivery, in which a private sector company, such as FedEx, will manage the sorting and transportation of packages, but the final mile delivery is done by USPS.
Rather than proposing full privatization of the USPS, Atkinson suggests opening service up to competition and for the USPS to focus on its core competencies, such as package delivery.
"They deserve credit for making some budget cuts and for being upfront about their fiscal condition. One of the problems is that they have been hamstrung by a lack of congressional approval for reforms," Atkinson tells Newsmax.
In the House, Issa introduced legislation similar to a measure he sponsored in the previous Congress that would begin to phase out Saturday delivery of mail, while maintaining Saturday delivery of packages, which is one of the few areas of growth.
The bill would allow the Postal Service to forgo past due payments owed to prefund retiree healthcare benefits, would eliminate the ability of national and state political committees to use the non-profit mail rate, and permit the USPS to sell advertising space on vehicles and facilities. The bill also would allow state and local services, such as the sale of fishing licenses, at postal facilities.
Legislative action in this session is unlikely considering the other issues Congress has on its agenda, but Issa spokesman Ali Ahmad says "with the notable exception of labor unions, all key stakeholders are in contact and working on a solution to save the Postal Service and prevent a massive taxpayer-funded bailout."
"The unions carry a lot of political weight because they are one of the largest unions and they are out there making a lot of noise, whereas the taxpayers are largely unaware of the situation or the need for reform," says Gattuso, who adds that labor opposition is "somewhat ironic as no one is talking about forced layoffs or drastic renegotiations of union contracts."
"The status quo is not sustainable. While some argue that the USPS's losses are due to faulty accounting or a temporary downturn in the economy, that claim is wishful thinking. The market for traditional mail has been shrinking rapidly," Gattuso tells Newsmax.
Unions have criticized the reform efforts, contending that the bills do not do enough to ease the burden of prefunding retirees' health benefits.
Neither Gattuso, nor Atkinson, see the USPS becoming extinct anytime soon. However, they say that, like newspapers and the publishing industry, a failure to adapt to an irrefutable trend toward digital and online communications will only exacerbate USPS's poor financial condition.
A Senate bill, co-sponsored by Delaware Democrat Tom Carper and Oklahoma Republican Tom Coburn, has moved closer toward the House measure, but even USPS' Donahoe has argued that committee's draft bill doesn't go far enough in granting the Postal Service greater control over its healthcare costs.
The Postal Service has proposed launching its own postal-specific healthcare plan – either within the broader Federal Employees Health Benefit Program or by negotiating directly with insurers.
http://www.newsmax.com/Newsfront/post-office-5-billion-default/2013/10/22/id/532408#ixzz2iTG0PDJK
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why doesn't Congress just fix the problem that they created
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My local delivery guy is a Jamaican waste of life who sucks! We make endless complaints about this chooming Obama brother and it only gets worse.
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My local delivery guy is a Jamaican waste of life who sucks! We make endless complaints about this chooming Obama brother and it only gets worse.
I can definitely believe the part about you making endless complaints
Isn't that your primary avocation while on this planet
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why doesn't Congress just fix the problem that they created
You are looking at the future of obamacrapcare.
Social Security and the post office are canaries in the coal mine, but libtards refuse to pay attention.
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You are looking at the future of obamacrapcare.
Social Security and the post office are canaries in the coal mine, but libtards refuse to pay attention.
hardly
Congress created the problem with the Post Office
please tell me what other Federal Agency or even private company is mandated to be "revenue neutral" and is also mandated in 2006 (thanks Congress) to pre-fund the retiree health benefits for its workers 75 years in advance, to the tune of about $5.5 billion per year.
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Don't worry, the cutnpaste queens will shoot down your factual argumentation with a picture of Obama as the Joker. That's funny.
This cattle that you debate thinks gov. is the problem....Even if the programs work, help millions of people avoid pain and misery and provide the masses with a better standard of living. WELL THAT CAN'T STAND!
These assholes read a book by some other delusional guy like Hayek or Freidman or Paul or Rand. So they KNOW BETTER. Why that mutt Soul Crusher will be along with another picture or article to prove this point. hahahahahahahahaha.
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Postal service had $1.9 billion quarterly loss
By PAULINE JELINEK of Associated Press
WASHINGTON (AP) — The Postal Service says it lost $1.9 billion over the first three months of this year and is pleading again for Congress to pass reforms to its financial system.
The agency said Friday that the loss for the quarter ended March 31 matched the $1.9 billion in red ink in the same period last year. And it came despite a 2.3 percent rise in its operating revenue and continued cost-cutting efforts.
Postal officials have been asking for comprehensive legislation that includes a different delivery schedule, greater control over its personnel and benefit costs and more flexibility in pricing and products.
Though various legislative proposals have been advanced, Congress has been unable to pass a bill with the requested changes.
http://news.msn.com/us/postal-service-had-dollar19-billion-quarterly-loss
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My local delivery guy is a Jamaican waste of life who sucks! We make endless complaints about this chooming Obama brother and it only gets worse.
This pleases me more than it should.
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House committee approves bill that would end door-to-door mail for 15 million people
Published May 22, 2014
Associated Press
A House committee has approved a proposal that would end door-to-door mail delivery for millions of Americans in favor of communal or curbside boxes.
The House Oversight and Government Reform Committee approved the measure on an 18-13 party-line vote Wednesday. The bill would direct the U.S. Postal Service to convert 15 million addresses over the next decade to the less costly, but also less convenient delivery method.
Democrats objected to the plan, and efforts in recent years to win its adoption have failed.
"I think it's a lousy idea," Rep. Stephen Lynch, D-Mass., told the Associated Press. Other lawmakers said it wouldn't work in urban areas where there's no place on city streets to put banks of "cluster boxes" with separate compartments for each address. People with disabilities who have difficulty leaving their homes could get waivers, and people who still want delivery to their door could pay extra for it — something Lynch derided as "a delivery tax."
The committee's chairman, Rep. Darrell Issa, R-Calif., acknowledged that the measure is far from the comprehensive overhaul most officials agree is needed to solve the postal service's financial problems, but said it "provides an interim opportunity to achieve some significant cost savings."
Converting to communal or curbside delivery would save $2 billion annually, Issa said, quoting from estimates that door delivery costs $380 annually per address compared with $240 for curbside and $170 for centralized methods. He said less than 1 percent of all addresses nationwide would undergo a delivery change annually and that communal boxes offer a safe, locked location for packages, doing away with the need for carriers to leave packages on porches, making them subject to theft and bad weather.
The Postal Service reported a $1.9 billion loss for the first three months this year despite continued cost-cutting, a 2.3 percent rise in operating revenue and increased employee productivity. Package business has risen but the service continues to struggle with inflationary cost increases and a continued decline in first-class mailing as people move to the Internet for letter writing and bill paying.
Postal officials have asked repeatedly for comprehensive legislation giving them more control over personnel and benefit costs and more flexibility in pricing and products. Though various legislative proposals have been advanced, Congress has not been able to agree on a bill with broad changes.
"Lawmakers should fix what they broke, not break what's working," National Association of Letter Carriers President Fredric Rolando said, referring to a 2006 law that requires the Postal Service to prefund its retiree health benefits. Meeting that requirement accounts for the bulk of the postal service's red ink. He said the Oversight Committee's bill is "irresponsible ... bad for the American public, bad for businesses, bad for the economy and bad for the U.S. Postal Service."
The Postal Service has been moving to more centralized delivery for some new addresses but hasn't done much to convert existing addresses, Issa said.
http://www.foxnews.com/politics/2014/05/22/house-committee-approves-bill-that-would-end-door-to-door-mail-for-15-million/
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U.S. Postal Service Has Not Earned a Profit in Almost a Decade
The government-owned enterprise has lost $51.7 billion since 2007
BY: Ali Meyer
September 22, 2015
The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation.
“There is no turnaround in sight,” states the report. “The Postal Service will almost certainly register another multibillion dollar loss in 2015; for the first two quarters of 2015, it suffered a net loss of $2.8 billion.”
In addition, the report finds that USPS has failed to make legally required payments to the U.S. Treasury and will default on its statutory obligations, which include the Postal Service Retiree Health Benefit Fund.
“Although the Postal Service has not yet received an explicit taxpayer bailout, it has failed to meet its legal obligations for several years in a row,” the report states. “The odds that a bailout will eventually become unavoidable increase as the sea of red ink continues rising.”
The Government Accountability Office (GAO) estimates that the Postal Service’s unfunded liabilities grew 62 percent from 2007 to 2013. The Tax Foundation says it is doubtful that the Postal Service will be able to meet its obligations.
The report says that if the enterprise had more operational flexibility, its losses would not be as large.
“While the Service does have greater operational discretion than many federal agencies, it has much less than a typical private-sector business because Congress often micromanages its actions,” the report says.
While Gallup found in 2014 that 72 percent of their respondents said USPS is doing a good job and only 8 percent regard its performance as poor, the report finds that there have been issues with service.
In 2014, delivery-time targets fell short seven out of eight times and in 2015, on-time delivery from January to March fell to 63.1 percent, down from 84.1 percent in the same quarter last year.
http://freebeacon.com/issues/u-s-postal-service-has-not-earned-a-profit-in-almost-a-decade/
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U.S. Postal Service Has Not Earned a Profit in Almost a Decade
The government-owned enterprise has lost $51.7 billion since 2007
BY: Ali Meyer
September 22, 2015
The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation.
“There is no turnaround in sight,” states the report. “The Postal Service will almost certainly register another multibillion dollar loss in 2015; for the first two quarters of 2015, it suffered a net loss of $2.8 billion.”
In addition, the report finds that USPS has failed to make legally required payments to the U.S. Treasury and will default on its statutory obligations, which include the Postal Service Retiree Health Benefit Fund.
“Although the Postal Service has not yet received an explicit taxpayer bailout, it has failed to meet its legal obligations for several years in a row,” the report states. “The odds that a bailout will eventually become unavoidable increase as the sea of red ink continues rising.”
The Government Accountability Office (GAO) estimates that the Postal Service’s unfunded liabilities grew 62 percent from 2007 to 2013. The Tax Foundation says it is doubtful that the Postal Service will be able to meet its obligations.
The report says that if the enterprise had more operational flexibility, its losses would not be as large.
“While the Service does have greater operational discretion than many federal agencies, it has much less than a typical private-sector business because Congress often micromanages its actions,” the report says.
While Gallup found in 2014 that 72 percent of their respondents said USPS is doing a good job and only 8 percent regard its performance as poor, the report finds that there have been issues with service.
In 2014, delivery-time targets fell short seven out of eight times and in 2015, on-time delivery from January to March fell to 63.1 percent, down from 84.1 percent in the same quarter last year.
http://freebeacon.com/issues/u-s-postal-service-has-not-earned-a-profit-in-almost-a-decade/
2006 you say?
hmmm, I wonder what happened to cause that?
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I think its really idiotic to REQUIRE the post office to post a profit...its a public service....however I also don't believe that mail needs to be delivered every single day in this day and age...maybe they should deliver the mail four times a week...Monday through Thursday...or.....Mon, Tues, Thurs, Fri....they could cut more workers, speed up service so that mail moves quicker, I don't think closing so many post offices is the answer..since it is true that rural areas and the suburbs still need postal access...
The problem I believe is the Republican hostility toward government services...my son is a mail carrier and he's getting ready to quit...the job is a tough one and the benefits don't come until much much later on...when you first start you are basically a flunky who gets pushed around by guys who have been there forever.....which is why guys go postal......and the reason those guys are there forever is because you have to have 30 years on the job to retire and get your pension....they should make it 25 years so people will leave.....or 20 years at a reduced pension
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I think its really idiotic to REQUIRE the post office to post a profit...its a public service....however I also don't believe that mail needs to be delivered every single day in this day and age...maybe they should deliver the mail four times a week...Monday through Thursday...or.....Mon, Tues, Thurs, Fri....they could cut more workers, speed up service so that mail moves quicker, I don't think closing so many post offices is the answer..since it is true that rural areas and the suburbs still need postal access...
The problem I believe is the Republican hostility toward government services...my son is a mail carrier and he's getting ready to quit...the job is a tough one and the benefits don't come until much much later on...when you first start you are basically a flunky who gets pushed around by guys who have been there forever.....which is why guys go postal......and the reason those guys are there forever is because you have to have 30 years on the job to retire and get your pension....they should make it 25 years so people will leave.....or 20 years at a reduced pension
The problem with the post office is that it actively refuses to implement useful and innovative services; they even refuse to allow third parties to do so, even if such third parties could reduce the operating cost for USPS itself. Case in point: Outbox (http://www.insidesources.com/outbox-vs-usps-how-the-post-office-killed-digital-mail/).
As far as I'm concerned, the USPS should be operated as a business. And like any business, if it can't sustain itself, it should adopt or die.
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The problem with the post office is that it actively refuses to implement useful and innovative services; they even refuse to allow third parties to do so, even if such third parties could reduce the operating cost for USPS itself. Case in point: Outbox (http://www.insidesources.com/outbox-vs-usps-how-the-post-office-killed-digital-mail/).
As far as I'm concerned, the USPS should be operated as a business. And like any business, if it can't sustain itself, it should adopt or die.
It is operated as a business, moron. And it does post a profit every year. The reason why it reads differently is that they have to pay out a pre-funded retirement 75 years in advance, thanks to George Bush's Congress.
UPS already contracts with USPS. Also, the USPS is 0 percent of the federal budget and operates entirely on its own. Not a dime of taxpayer money funds the USPS.
Hope this helps, all morons included.
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I think its really idiotic to REQUIRE the post office to post a profit...its a public service....however I also don't believe that mail needs to be delivered every single day in this day and age...maybe they should deliver the mail four times a week...Monday through Thursday...or.....Mon, Tues, Thurs, Fri....they could cut more workers, speed up service so that mail moves quicker, I don't think closing so many post offices is the answer..since it is true that rural areas and the suburbs still need postal access...
The problem I believe is the Republican hostility toward government services...my son is a mail carrier and he's getting ready to quit...the job is a tough one and the benefits don't come until much much later on...when you first start you are basically a flunky who gets pushed around by guys who have been there forever.....which is why guys go postal......and the reason those guys are there forever is because you have to have 30 years on the job to retire and get your pension....they should make it 25 years so people will leave.....or 20 years at a reduced pension
Your son would tell you differently. If he were to deliver at four days a week, the job would be impossible to do. That is a ridiculous amount of mail volume to handle in just four days. Besides, most offices are already increasing an extra day, 7 days a week, due to Amazon Sunday.
I could not think of anything more idiotic than limiting mail service to less than 6 days a week. It simply can't be done with the volume of mail and online ordered packages and nor should it be done. Why would you want less service?
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I think its really idiotic to REQUIRE the post office to post a profit...its a public service....however I also don't believe that mail needs to be delivered every single day in this day and age...maybe they should deliver the mail four times a week...Monday through Thursday...or.....Mon, Tues, Thurs, Fri....they could cut more workers, speed up service so that mail moves quicker, I don't think closing so many post offices is the answer..since it is true that rural areas and the suburbs still need postal access...
The problem I believe is the Republican hostility toward government services...my son is a mail carrier and he's getting ready to quit...the job is a tough one and the benefits don't come until much much later on...when you first start you are basically a flunky who gets pushed around by guys who have been there forever.....which is why guys go postal......and the reason those guys are there forever is because you have to have 30 years on the job to retire and get your pension....they should make it 25 years so people will leave.....or 20 years at a reduced pension
If anything they need MORE workers, not less.
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Your son would tell you differently. If he were to deliver at four days a week, the job would be impossible to do. That is a ridiculous amount of mail volume to handle in just four days. Besides, most offices are already increasing an extra day, 7 days a week, due to Amazon Sunday.
I could not think of anything more idiotic than limiting mail service to less than 6 days a week. It simply can't be done with the volume of mail and online ordered packages and nor should it be done. Why would you want less service?
Even though you are being an ass, you make a valid point...didn't think of it that way..thanks
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It is operated as a business, moron. And it does post a profit every year. The reason why it reads differently is that they have to pay out a pre-funded retirement 75 years in advance, thanks to George Bush's Congress.
UPS already contracts with USPS. Also, the USPS is 0 percent of the federal budget and operates entirely on its own. Not a dime of taxpayer money funds the USPS.
Hope this helps, all morons included.
Truth, the whole truth and nothing but the truth. Well said TA. Imagine if the USPS didn't exist. Imagine how fucking expensive it would be to mail or ship anything if all we had was fedex and ups. The USPS keeps them honest. Or at least somewhat honest. Not to mention how much shittier it would be to work for a private shipping/mailing company. Color me pro-post office.
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It is operated as a business, moron. And it does post a profit every year. The reason why it reads differently is that they have to pay out a pre-funded retirement 75 years in advance, thanks to George Bush's Congress.
Perhaps you ought to read my post again. I never suggested that they don't turn a profit. You ought to comprehend what you read before you respond moron.
UPS already contracts with USPS.
Good for them. This goes to my point... how exactly? Is it supposed to signal innovation? Are we supposed to believe that the USPS acting as as a UPS subcontractor is innovative?
Also, the USPS is 0 percent of the federal budget and operates entirely on its own.
I never suggested otherwise, so your point is moot.
Not a dime of taxpayer money funds the USPS.
I never suggested that it did, so your point is moot.
Hope this helps, all morons included.
What with it coming from the King of Morons, I'm sure it will.
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I think the post office does a decent job....if the post office ran like a business it would definitely have to raise prices and seriously I really think service would go down....UPS and FedEx aren't what they claim to be....stuff often arrives broken, and delivery for nexty day is hit or miss...plus there drivers would not be able to handle the mail..right now they simply drop off a package and are on their way to their next destination...easy to do...instead of actually having to put mail into the box of all residents in a given area...
Also the congress adds to the inefficiency of the UPS due to mandates and also not wanting any cuts in their districts
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I think the post office does a decent job....if the post office ran like a business it would definitely have to raise prices and seriously I really think service would go down....UPS and FedEx aren't what they claim to be....stuff often arrives broken, and delivery for nexty day is hit or miss...plus there drivers would not be able to handle the mail..right now they simply drop off a package and are on their way to their next destination...easy to do...instead of actually having to put mail into the box of all residents in a given area...
Also the congress adds to the inefficiency of the UPS due to mandates and also not wanting any cuts in their districts
It is run like a business. Ask your son.
The next step for the post office should/may be to offer the public banking services and basic financial services and small loans with no fees and at super low interest rates, lower than the private sector. In Japan for instance, the Postal Service operates as a full bank to its citizens and it operates extremely well and fair.
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It is run like a business. Ask your son.
The next step for the post office should/may be to offer the public banking services and basic financial services and small loans with no fees and at super low interest rates, lower than the private sector. In Japan for instance, the Postal Service operates as a full bank to its citizens and it operates extremely well and fair.
That does sound interesting, now that you mention it.
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It is operated as a business, moron. And it does post a profit every year. The reason why it reads differently is that they have to pay out a pre-funded retirement 75 years in advance, thanks to George Bush's Congress.
UPS already contracts with USPS. Also, the USPS is 0 percent of the federal budget and operates entirely on its own. Not a dime of taxpayer money funds the USPS.
Hope this helps, all morons included.
Bush left office in 2009....Democrats controlled the Congress from 2007-2011 and they had the Presidency and COMPLETE control of government from 2009-2011. They didn't make an effort to address the situation with the post office pension requirements..so far as I know it was never even on their radar. Seems like it's the democrats fault to me...
I live right next to Bedford Twp, MI. It's composed of three villages that have a total population of 30,000 people. The twp covers roughly 40 square miles of flat acreage with good roads laid out in a nice grid....you can literally drive from one end to the other in less than 10 minutes. It has one post office in each village. If the rest of the nation has a set up like that, the post office seriously needs to reevaluate it's staffing.
And having the Post office jump onto the banking industry is possibly the dumbest idea I've ever heard. The level of thievery and corruption within he postal service is high enough...we don't need to add more fuel to that fire. I'm not even going to address the general incompetence and apathy of the employees...that speaks for itself.
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Bush left office in 2009....Democrats controlled the Congress from 2007-2011 and they had the Presidency and COMPLETE control of government from 2009-2011. They didn't make an effort to address the situation with the post office pension requirements..so far as I know it was never even on their radar. Seems like it's the democrats fault to me...
I live right next to Bedford Twp, MI. It's composed of three villages that have a total population of 30,000 people. The twp covers roughly 40 square miles of flat acreage with good roads laid out in a nice grid....you can literally drive from one end to the other in less than 10 minutes. It has one post office in each village. If the rest of the nation has a set up like that, the post office seriously needs to reevaluate it's staffing.
And having the Post office jump onto the banking industry is possibly the dumbest idea I've ever heard. The level of thievery and corruption within he postal service is high enough...we don't need to add more fuel to that fire. I'm not even going to address the general incompetence and apathy of the employees...that speaks for itself.
Here you go genius.
http://business.time.com/2013/02/07/how-healthcare-expenses-cost-us-saturday-postal-delivery/
Since 2006, the Post Office has been legally required to pre-fund health benefits for future retirees at a cost of around $5.5 billion a year.
When Congress imposed those mandates in 2006, the Post Office was doing just fine. Congress decided that the Post Office was healthy enough to lock in health benefits for future retirees — for the next 75 years, mind you, something no other public or private agency does.
109th United States Congress
From Wikipedia, the free encyclopedia
109th United States Congress
108th ← → 110th
Dennis Hastert 2.jpg
House Speaker Dennis Hastert (2006)
Duration: January 3, 2005 – January 3, 2007
Senate President: Dick Cheney (R)
Senate Pres. pro tem: Ted Stevens (R)
House Speaker: Dennis Hastert (R)
Members: 100 Senators
435 Representatives
5 Non-voting members
Senate Majority: Republican Party
House Majority: Republican Party
Sessions
1st: January 4, 2005 – December 22, 2005
2nd: January 3, 2006 – December 8, 2006
The One Hundred Ninth United States Congress was the legislative branch of the United States, composed of the United States Senate and the United States House of Representatives, from January 3, 2005 to January 3, 2007, during the fifth and sixth years of George W. Bush's presidency. House members were elected in the 2004 elections on November 4, 2004. Senators were elected in three classes in the 2000 elections on November 7, 2000, 2002 elections on November 5, 2002, or 2004 elections on November 4, 2004. The apportionment of seats in the House of Representatives was based on the Twenty-second Census of the United States in 2000. Both chambers had a Republican majority, the same party as President Bush.
Hope this helps. (Probably won't)
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Bush left office in 2009....Democrats controlled the Congress from 2007-2011 and they had the Presidency and COMPLETE control of government from 2009-2011. They didn't make an effort to address the situation with the post office pension requirements..so far as I know it was never even on their radar. Seems like it's the democrats fault to me...
I live right next to Bedford Twp, MI. It's composed of three villages that have a total population of 30,000 people. The twp covers roughly 40 square miles of flat acreage with good roads laid out in a nice grid....you can literally drive from one end to the other in less than 10 minutes. It has one post office in each village. If the rest of the nation has a set up like that, the post office seriously needs to reevaluate it's staffing.
And having the Post office jump onto the banking industry is possibly the dumbest idea I've ever heard. The level of thievery and corruption within he postal service is high enough...we don't need to add more fuel to that fire. I'm not even going to address the general incompetence and apathy of the employees...that speaks for itself.
You have no clue whatsoever about the mail system and mail volume.
You would not last a day delivering the mail. Hope this helps.
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Wow...brilliant response. You wouldn't last a day emptying ash trays at a bowling alley...you wouldn't last a day cleaning green beans on a farm...you wouldn't last day scaling fish at a tuna processing plant...you wouldn't last a day selling newspapers at a kiosk....you wouldn't last a day giving out flu shots at Walgreen's....you wouldn't last a day cleaning toilets at the airport...you wouldn't last a day working at a dry cleaners....the list is...literally...endless .
I'll refrain from adding the "hope that helps" bit...that kind of misplaced arrogance is so "early internet." It's not 1994 any more...maybe you should ditch AOL.
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Wow...brilliant response. You wouldn't last a day emptying ash trays at a bowling alley...you wouldn't last a day cleaning green beans on a farm...you wouldn't last day scaling fish at a tuna processing plant...you wouldn't last a day selling newspapers at a kiosk....you wouldn't last a day giving out flu shots at Walgreen's....you wouldn't last a day cleaning toilets at the airport...you wouldn't last a day working at a dry cleaners....the list is...literally...endless .
I'll refrain from adding the "hope that helps" bit...that kind of misplaced arrogance is so "early internet." It's not 1994 any more...maybe you should ditch AOL.
Well, just enjoy knowing you are wrong about all of it and you have no clue what you are talking about.
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I thin this is where we start an endless loop of saying "no...you're dumb".
You're stupid enough to think the post office should get into the financial services business. I'm going to let that stand as proof of your general lack of intelligence and go on about my business.
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I thin this is where we start an endless loop of saying "no...you're dumb".
You're stupid enough to think the post office should get into the financial services business. I'm going to let that stand as proof of your general lack of intelligence and go on about my business.
Yes, because you clearly have nothing but bullshit to spout anyways. Go on and leave.
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I thin this is where we start an endless loop of saying "no...you're dumb".
You're stupid enough to think the post office should get into the financial services business. I'm going to let that stand as proof of your general lack of intelligence and go on about my business.
You're criticizing something without having the details (in case you hadn't noticed).
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Stamp prices are falling by 2 cents, and that's bad news for the USPS
Feb 29th 2016
By dropping the price of stamps by 2 cents, the U.S. Postal Service says it will lose some $2 billion a year.
Starting April 10, stamps for 1-ounce letters will drop in price from 49 cents to 47 cents. This will come after the expiration of a 2-year agreement between Congress and the U.S. Postal Service to raise the price of stamps by 3 cents.
The price hike reportedly helped the sputtering post office raise some $4.6 billion, but knocking the price back down will reportedly cost it $2 billion a year.
Postmaster General Megan J. Brennan says the service is suffering from "extreme multi-year revenue declines" because of the Great Recession.
Brennan said in a statement: "Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service's precarious financial condition."
The Great Recession and increased online communication has taken a toll on the USPS, which has tried to get creative with how to save and earn money, including a bid to stop Saturday deliveries as well as to start alcohol deliveries.
The Postal Service's move to end Saturday delivery was halted in Congress. The Improving Postal Operations, Service and Transparency Act, which would allow for alcohol deliveries, is currently in review.
http://www.aol.com/article/2016/02/29/stamp-prices-are-falling-by-2-cents-and-thats-bad-news-for-the/21320364/?intcmp=hplnws
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This whole situation with the Post Ofice is so ridiculous....either fund it like its supposed to to be funded or cut back in service....Mail should not be delivered 6 days a week in this day and age...5 days aweek would be better and even maybe four....most mail today is irrelevant..no one writes letters anymore unless its to a soldier overseas
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This whole situation with the Post Ofice is so ridiculous....either fund it like its supposed to to be funded or cut back in service....Mail should not be delivered 6 days a week in this day and age...5 days aweek would be better and even maybe four....most mail today is irrelevant..no one writes letters anymore unless its to a soldier overseas
Ridiculous statement. Go visit any Post Office and talk to carriers. There is SOOOOOOOO much mail that most are overburdened delivering 6 days a week. Now you have Amazon and Internet packages which are huge and only growing. UPS hands most of these off even to USPS. The mail volume at any station is heavy, way too heavy to cut back on any service.
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Ridiculous statement. Go visit any Post Office and talk to carriers. There is SOOOOOOOO much mail that most are overburdened delivering 6 days a week. Now you have Amazon and Internet packages which are huge and only growing. UPS hands most of these off even to USPS. The mail volume at any station is heavy, way too heavy to cut back on any service.
You're both right. Bush tried fucking the PO by making them pay x amount of pension funding upfront which makes it appear there is a funding shortage. The price of stamps decreasing is ludicrous. It should have gone up 2 cents at the very least. I can't think of a better government service available to us than the USPS. I live in michigan and for less than 50 cents I can put a card in the mail going to family in California and it's there by Wednesday. Thursday at the latest. If the GOP had their way and eliminated the USPS, we'd all be dependent of UPS and Fedex. We'd being paying through our assholes for the most basic of services. The USPS keeps it's competitors honest. To a degree.
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https://www.washingtonpost.com/news/powerpost/wp/2017/09/26/probe-estimates-billions-of-delayed-mail-pieces-postal-service-acknowledges-some-coverups/?utm_term=.e5035679b84e
The mail at our office is atrocious!
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U.S. Postal Service's Financial Viability - High Risk Issue
Comprehensive legislative reform and additional cost-cutting measures are needed for the U.S. Postal Service (USPS) to achieve sustainable financial viability.
USPS financial viability continues to be high risk because USPS cannot fund its current level of services and financial obligations from its revenues. As stated in GAO’s 2019 High-Risk update, USPS faces financial challenges that include the following:
Poor financial situation: USPS’s overall financial condition is deteriorating and unsustainable. USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018. USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue.
Insufficient cost savings: The savings from USPS cost-reduction efforts have dwindled in recent years. Although USPS has stated that it will aggressively reduce costs within its control, its plans will not achieve the kind of savings necessary to significantly reduce current operating costs.
Unfavorable trends: USPS’s expenses are now growing faster than its revenues—partly due to rising compensation and benefits costs and continuing declines in the volume of First-Class Mail.
https://www.gao.gov/key_issues/us_postal_service_financial_viability/issue_summary