Let’s Also Solve the Postal Financial Mess

Everybody’s wringing their hands and predicting doom over the so-called fiscal cliff right before Dec. 31 when everybody’s taxes automatically go up and many federal programs are cut.

But nobody is paying any attention to the U.S. Postal Service’s financial  state which is so precarious that it may not even be able to meet its payroll unless  Congress does something really really quickly.

Congress caused much of this problem itself when it began requiring the USPS to fork over more than $5.8 billion every year to the U.S.  Treasury to pay for the healthcare costs of future retirees, something no other federal agency is saddled with.

And that was part of postal “reform” legislation enacted in 2007 which did do some good by creating a system of small annual predictable postage increases tied to the  Consumer Price Index.

A small predictable income stream and a massive financial obligation that almost guarantees insolvency and bankruptcy.

Last year, the USPS defaulted on one of these payments for the first time.

Of course nobody in Congress wants to own up to its irresponsibility in requiring these payments in the first place.

But it does not help when prominent news organizations suggest that next year ordinary people may not have the postal service around to deliver their year-end Holiday gifts as CNN did recently. http://www.cnn.com/2012/12/20/opinion/avlon-post-office/index.html

After all, we are talking about a more than $9 billion mailing industry that employs millions of people across the country that by its own admission absolutely needs the USPS to stay in business.

In this country it’s highly unlikely that proposals so unfavorable to commercial interests will ever get passed into law.

Last Spring, the Senate passed a bill that would have closed nearly 100 facilities nationwide and offered early retirement to many employees saving nearly $20 billion.

But a more restrictive House bill never saw the light of day probably because its sponsors lacked the votes for its passage.

So will Congress tackle the USPS’s fiscal problems once the fiscal cliff hysteria dies down?

Let’s hope so.

Advertisements
This entry was posted in postal finances, U.S. Postal Service and tagged . Bookmark the permalink.

One Response to Let’s Also Solve the Postal Financial Mess

  1. Lynn says:

    What is the solution? There’s a lot of rhetoric about how the Post Office is unprofitable, and is a dinosaur, but is the solution really to force businesses to turn to UPS or Fed Ex. What about consumers? Some of us don’t pay bills online.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s