Welcome to USPS.com. “We cannot generate enough revenue or cut enough costs to pay all of our bills.”. Postal Service just revamped its priority mail program to raise revenue and drive new growth in its package delivery business. That means the pensions are funded at 95 percent of their projected liability. The Postal Service’s finances are a disaster. Legal Statement. WASHINGTON — The U.S. With the holiday season approaching, Brennan said, the Postal Service added hours to include early morning and evening package deliveries and was expanding service on Sundays. Mutual Fund and ETF data provided by Refinitiv Lipper. All rights reserved. by Jesse Nankin and Krista Kjellman Schmidt, ProPublica, Updated April 15, 2009. A United States Postal Service worker pushes a mail cart past a floodwall on Treat Ave in the Mission District of San Francisco, Calif. on Friday, Oct. 27, 2017. Adam Clark Estes at Vox writes—How the Biden administration can save the Postal Service. The price of a first-class stamp, now 49 cents, is slated to increase by one penny in January because of inflation. Night Owls is a themed open thread appearing at Daily Kos seven days a week. It pleaded for more freedom to raise stamp prices to help keep pace with consumer demand for ever-quicker deliveries from online shopping. You've successfully subscribed to this newsletter! At this stage, even the Postal Service admits it needs help. WASHINGTON — The beleaguered U.S. Business Insider cited a 2017 Citi analysis which calculated the USPS was undercharging Amazon by $1.46 per package, which a Morningstar analyst said still holds true today. The GAO has reported that many experts consider at least 80 percent prefunding to be sound for government pensions. A United States Postal Service worker pushes a mail cart past a floodwall on Treat Ave in the Mission District of San Francisco, Calif. on Friday, Oct. 27, 2017. Mike Emanuel currently serves as chief congressional correspondent for FOX News Channel (FNC). All Rights Reserved. Mail volume fell by roughly 5 billion pieces, or 3.6 percent, as people in the digital age rely more on email for online bill payments. Delaware Democratic Sen. Tom Carper and Oklahoma Republican Sen. Tom Coburn have a bill with bipartisan support in the Senate. Postal Employees. Quotes displayed in real-time or delayed by at least 15 minutes. Last year, it tallied a $5.6 billion loss. The Senate proposal would move to five-day delivery after 2017, keep all processing facilities open for at least two more years, and allow the U.S. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. The USPS and some congressional leaders are … Medicare cannot afford a reckless USPS bailout. Revenue came to $69.6 billion, down from $71.5 billion last year. Postal Service reported a financial loss Tuesday for the 11th straight year, citing declining mail volume and costs of its pension and health care obligations even as it predicted another strong holiday season of package deliveries. Postal Service is up in the air, as President Donald Trump continues to starve the institution of financial assistance. Postal Service could be headed for a bailout if budget woes are not addressed with significant reforms, argued an expert Friday. Posted on August 10, 2017 August 10, 2017 by 21cpw. As for the challenges of getting such an overhaul passed during an election year, Issa says the time is now. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. Postal Service … By a 62-37 vote, senators approved a measure which had divided mostly along rural-urban lines. The 2017 loss came after a double-digit increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total postal revenue. Postal Service’s financial straits could disrupt daily mail delivery, Postal Service may get more freedom to raise stamp prices, Dog attacks of U.S. postal workers highest in three decades. by Jesse Nankin and Krista Kjellman Schmidt, ProPublica, Updated April 15, 2009. Report warns USPS may not be able to pay health benefits, Cops: Lazy NY mailman trashed 1K letters, packages, Sen. Rand Paul clashes with ABC's Stephanopoulos: 'You're forgetting who you are as a journalist! The Senate proposal would move to five-day delivery after 2017, keep all processing facilities open for at least two more years, and allow the U.S. Hope Yen, Associated Press. The circles below represent the relative size of each U.S. government bailout of … Without help, “our financial results will continue to deteriorate and likely at an accelerated rate,” said Postmaster General Megan J. Brennan. "Much of what I have to do is to get my fellow Republicans to swallow the pills of five-day delivery -- going to the curb for delivery, right-sizing the size of the post office, quite candidly changing their medical retirement system to make it streamline with the rest of the workforce in America, by putting them on Medicare and out of a very expensive private program that you and I pay for," Issa told Fox News. To become financially stable, the Postal Service is also urging Congress to provide it relief from the mandate to prefund retiree health benefits. Learn more about Friends of the NewsHour. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. The Postal Service lost $8.8 billion in FY 2019, it lost $3.9 billion in FY 2018, and it lost $2.7 billion in FY 2017. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. Claim: The U.S. economic downturn due to the COVID-19 coronavirus pandemic in early 2020 was forcing the United States Postal Service to close. Thank you. "That kind of message will cause people to make a reform this year. ©2021 FOX News Network, LLC. Analysts have cheered the Postal Service’s promise in the digital age. But what’s missing from those receiving a federal bailout is the U.S. 2017 Edition; Order 2018 Edition; Benefits Guide; E-Newsletter; Forum; Blogs; Online Education; Pay. To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. Mail volume is now at a 29-year low, and for the past 10 years, USPS recorded annual losses as high as $15.9 billion. Through rain, sleet, hail and even a pandemic, mail carriers serve every address in … Post your thoughts and opinions here about current Postal employee topics. The Postal Service, an independent agency, is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes. Find information on our most convenient and affordable shipping and mailing services. Only the $10 billion loan to the Postal Service made it into law, over Mnuchin's objections. Even though the USPS hasn't been making those payments, it continues to book the theoretical cost as an expense — $16.8 billion since the start of the 2017 … "Despite our efforts and our hard work, we cannot return the organization to profitability or secure our long term financial outlook without the passage of comprehensive reform legislation," Jeffrey Williamson, United States Postal Service executive vice president, told the House Oversight and Government Reform Committee recently. The U.S. “There are 7.5 million private sector jobs that depend on the postal system, and these jobs are at risk unless Congress takes action on postal reform.”, Left: Less than $13 billion, but not exactly chump change and also getting bigger every year, all without the coronavirus. Use our quick tools to find locations, calculate prices, look … Democrats and U.S. House Speaker Nancy Pelosi’s newly announced "relief" proposal, titled the “ Take Responsibility for Workers and Families Act,” cancels the U.S. https://www.pbs.org/newshour/nation/u-s-postal-service-marks-11-straight-years-of-financial-loss, “Our financial results will continue to deteriorate and likely at an accelerated rate.”, U.S. Photo by Andrew Harrer/Bloomberg via Getty Images. The commission might limit how high prices could go, but the cost of a first-class stamp could jump. This evolution, which pits postal management against postal unions and the USPS’s bloated workforce, is nevertheless a vital step toward staving off bankruptcy and a taxpayer bailout. Mike Emanuel reports from Washington, D.C. Postal Service just revamped its priority mail program to raise revenue and drive new growth in its package delivery business. The audit explains that the Postal Service lost $62.4 billion between FY 2007 and FY 2017, with $54.8 billion of these losses relating to retiree health care prefunding that it had been required to pay down as part of Postal Accountability and Enhancement Act of 2006. More recently, it began a pilot program this holiday season to provide cheap next-day service with packages delivered Sundays to people’s homes. “No other shipper delivers as many e-commerce packages to the home.”. Postal Service reported revenue of $69.6 billion for fiscal year 2017 (October 1, 2016 - September 30, 2017), a decrease of $1.8 billion compared to the prior year. Postal Service officials are seeking a $75 billion bailout from taxpayers. U.S. “The Postal Service continues to win e-commerce customers, grow our package delivery business and increase market share,” Brennan said, attributing its strength in part to affordable pricing compared to rivals UPS and FedEx. The White House’s 2019 budget proposal addresses the ailing finances of the Postal Service and says that reforms are needed to allow it to “meet its financial and service obligations with business revenue, as intended, rather than a taxpayer-financed bailout.” USPS Financial Problems. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. Postal Service, as Trump refuses to help the agency in what could become a … Frank Todisco, chief actuary for the Government Accountability Office, told a House committee last week that the agency had $100 billion in debt and unfunded health benefit liabilities at the end of the last fiscal year. It continues to hemorrhage money and routinely reports big losses when the agency announces its financials at the end of each quarter or year. This material may not be published, broadcast, rewritten, or redistributed. 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