Skip to comments.Post Office Warns of Default; Wants Help From Congress
Posted on 08/05/2011 10:49:48 AM PDT by NautiNurse
The U.S. Postal Service lost $3.1 billion in the third quarter and warns it will default on payments to the federal government if Congress does not step in with help.
Total mail volume for the quarter that ended June 30 fell to 39.8 million pieces, a 2.6 percent drop from the same period the previous year.
Also, it is required to make an annual payment to the federal government of $5.5 billion. The postal service says high payroll and retiree costs and declining volume has put it in a severe bind.
The postal service says it lost $5.7 billion during the nine-month period ending June 30, compared to a $5.4 million loss in the same period of 2010.
(Excerpt) Read more at ibtimes.com ...
They owe the government money? So, they want the government to give them money? So they can pay the government what they owe the government?
We are so screwed.
Yep. Notice I edited out the laughable line, “The USPS does not get taxpayer funds.”
She went ballistic on me -- "We are NOT the government! We are a private company! We receive no tax dollars!"
I shrugged again and said, "Sure Lady. Whatever you say."
Most of the stuff I get in the mail today is junk - maybe they should raise their prices on that stuff rather than the price of a stamp?
And Fannie and Freddie want 5 Billion more...
We still use the postal service and they do a decent job for us. I have no idea how much it costs (bottom line) to ship a letter. How much is a stamp now? 45c? Probably costs a lot more than that when you consider all funding and costs.
Lol, you need to cut those retirement benefits and close the bulk mail centers. That are buy a few more million dollars homes for employees.
“They owe the government money? So, they want the government to give them money? So they can pay the government what they owe the government?”
It worked for GM! /sarc
Isn’t this what the administration is doing? Borrowing money from China so they can pay the interest they owe China?
Oh yea - I meant to mention - I totally piss off the people in my local post office when I ask for the President Reagan stamps and not the generic Forever stamps. One time one disgruntled cog told me they were out of them when I saw a sheet in her drawer - I thought her head was gonna explode when I told her “I think I see one more sheet in your drawer there.”
Increasing the cost of stamps may help. However, if it gets too expensive, I'll pay my bills online.
NOBODY DOES THIS ANYWHERE ELSE.
It's just another way to have the Postal Service subsidize the rest of the government.
The headline is deceptive ~ USPS is not asking for "help" ~ they are asking for the government to quick standing on their corporate neck and sucking all their money.
It is one of the few constitutionally authorized functions of government.
I would eliminate SS and 40 other government agencies before eliminating the Post Office.
Didn’t the post office overpay into some retirement fund? I never heard what happened there.
omg—I avoid the surly post office counter workers like the plague. Ordered my Reagan forever stamps online. Bought enough for a lifetime supply, since I only use stamps to send my annual tax return.
People like my brother is the problem. The mail carriers had 2 blocks added on due to less mail and they all did a slowdown to save the job!
When my friend was a mail carrier he’d be done by 11:30 but paid a full day. And that was a few years ago when there was mail!
I remember when Zero was talking about how the National Health Care scheme he was proposing would not squeeze out private insurance companies. He compared the Postal Service to UPS and FedEx and smuggly claimed that THEY weren’t being squeezed out of business.
But the lazy and butt-kissing journalists failed to use that analogy and ask about how the USPS LOSES money every year and the taxpayers have to shoulder that burden as well.
the lying postal unions are advertising heavily on rush’s show.
In my area they have released a list of post offices that are up for “possible” closure. They all appear to be in heavily Democrat populated areas sure to generate large volumes of complaints to Washington.
The USPS should charge more for junk mail ads.
Postal service employees I see get time off for sick time any time a bee farts upon them. Snow Shoe Thompson is reeling in his grave.
I had a minor complaint with the post office last week - very minor - and called their 800 number - the woman who answered spoke with a heavy accent and I couldn't understand her. I asked if she was in the United States... she said she was and I asked what State she was in. Her response? She said for 'Security' reasons, she couldn't tell me the name of the State. I started laughing - and said I would call back and talk to someone else.
That type paranoia doesn't exist outside government. The next person I called and spoke to was a normal person, helped me with the issue and laughed about the first woman...
I have NO desire to support the post office. Mail should be jobbed out to a company that knows how to deal with 'customers' - a concept the post office has yet to 'get'.
This morning on CNN the USPS had an add that ended with, “How much does this cost the taxpayer? Nothing. The USPS does not get public funds.” (paraphrase)
Then they are asking congress for money. ROFL
The USPS loses about 10k per employee per year.
” We are so screwed. “
naw. lots of Boehners supporters here say it’s no problem.
we didn’t need to cut now. (and we did our best with 1/3).
we can keep spending trillions by borrowing more money.
so what if the USPO loses 3 billion every 3 months.
so what if Fannie and Freddie lose billions each quarter
(with debt not even included in the Federal books!)
the important thing, is we have begun the dialogue about debt, and we will win in 2012, and fix it all in 2013...
the problem isn’t the idea of a Post Office.
it’s the huge payroll and pension costs.
it’s the unionized workers who “negotiate” with people they give donations to. clear conflict of interest.
there’s lots of smart hardworking Americans who’d do those jobs as well or better, for half the money.
No kidding! For every actual piece of mail I get, there are 5-10 pieces of junk. I used to send empty return envelopes back and try to get off mailing lists, but it takes too much time and generally doesn't work. So now I burn it in my trash barrel. No landfill for me. : )
What are you some kind of right wing Tea Party nut?
Consider yourself fortunate. We never see the same carrier two weeks in a row. I spend way too much time re-delivering errant mail placed in my mailbox.
Back around 1994, when a postage increase went into effect, our newspaper said all postal revenue went into the gov’t general found, then the gov’t would give the P.O. a budget, if the P.O. was able to operate within that budget it was said to make a profit, if it needed more money to operate it was said to loose money. The paper said that went into effect in 1968. I doubt if anything has changed.
Mail volume is in decline. Times are tough for everyone, so it may be a bad time to make drastic job cuts. But there are things we CAN do now, w/o job cuts.
- Why not start by ending Saturday delivery ? That would end the Saturday overtime pay.
- Why not end new hiring & let attrition shrink the workforce.
Where’s the long term plan to re-size the USPS ?
- Why not have a long term goal for mail delivery every other day (M W F one week, Tu Th the next week). Double the route sizes and end junk mail. These changes would allow 1/2 the work force to deliver our mail.
If you are healthy and unharmed following the meetings, report back to us how your suggestions were received.
thought maybe it ought to be on congress’s agenda, since they always work in our best interest...
- Why not start by ending Saturday delivery ? That would end the Saturday overtime pay.
Whoa! I'm making overtime for saturday? Who knew? Sure ain't on my paycheck. There are Rural Carrier Associates that carry mail on the weekends with no benefits, and NO OVERTIME. The only time we're authorized to get overtime is before Christmas when they make danged sure we don't.
Why not end new hiring & let attrition shrink the workforce.
Has been happening already. In my area, offices are being squeezed including mine. We consolidated the city walking routes and now they walk 15 to 17 miles per day. Hey, how about ending every other day of delivery? Okay, so NOW we're talking overtime. These guys usually can make it back in their alloted 8 hours or whatever, but if they take twice the mail volume.... overtime.
Double the route sizes and end junk mail: Hmm. That would put some rural routes over 250 miles per day. Ending junk mail is just an attack on free market businesses desperately trying to ADVERTISE THEIR BUSINESSES! You want to hurt businesses? How about tripling their costs to advertise?
One problem I have with Free Republic is how much people spew without thinking or knowing what is involved here. I see the Post Office as a Constitutionally valid service of the Federal Government, like I see the Military. We sell a service and products, though. Supposedly self-sustaining, but getting killed due to Obamanomics.
Nobody is entitled to anything. There are no “entitlements” in the long run.
I think Netflix is carrying the whole USPS for now, and that will decline too as the streaming service continues to grow.
Hey, I know! Really, the USPS should be in charge of all email, and they should be allowed to charge a nickel per email for postage. Then they wouldn’t never have no mo problems.
I live in Boone County WV. Of the 15 post offices, eight and slated for closure. Theyre mostly in areas where seniors who dont even know what the internet is, much less having paid their bills on line.
The Govt is going deliberately closed mouth as to what post offices for sure will be closed and when it will happen. I was told the other offices MIGHT be closing in the neight county..or may nor. An yes, even for this county, who alays go for pubblies in the past elections, ar
Junk mail is the only thing keeping them afloat. And it’s been that way for 20 years.
You mean business advertisements?
1. Is Saturday overtime paid at other branches ? I’d heard it was.
2. 1st class mail volume is down due to the internet (email & the web). End junk mail and the total volume drops even after the recovery.
3. Every-other-day mail delivery would only be for mail recipients. Half the delivery routes would occur on one day, the other half on the next.
4. USPS mail delivery personnel wouldn’t have a longer route, they would just have two routes, alternating every day. Their route size each day wouldn’t change.
With 2, 3 & 4 above, only half the work force would be required.
Cap the spening and cut the program.
Geithner and his running dog lackeys are not interested in accounting for it.
That is unfortunate. And you certainly have the right to complain.
If it doesn’t have a value, then it should be eliminated.
The RATE PAYERS PAY POSTAGE. That's how USPS is financed. You as a TAX PAYER have no right to POSTAGE.
Since USPS has not normally been in the practice of losing money every year (until Obama gave way the country to the Chicoms) they were not getting taxpayer support. They still aren’t.
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