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Post by Rainier Wolfcastle on Feb 9, 2011 14:35:18 GMT -5
Postal Service warns of default as losses mount
By Ben Rooney
February 9, 2011: 12:48 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 the federal fiscal year 2011. That compares with a loss of $297 million a year ago.
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 December 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.
The agency said it will be forced to default on some of its financial obligations this year unless Congress acts to change a 2006 law that requires 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 agency 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 agency 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.
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dspitz17325
Need to Get a Life!
I came to chew bubblegum and kick some ass and i am all out of bubblegum .
Posts: 543
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Post by dspitz17325 on Feb 10, 2011 9:14:44 GMT -5
The Government shouldn't be allowed to run a lemonade stand , they to this date have not run anything correctly to show a profit thats why they bought out GM an other failing business that we as idiot tax payers will be forced to bankroll .I don't even think the Government could pull off a circle jerk and show a profit .Let's see the list of failures USPS ,SS , MEDICARE , WELFARE ,INCOME TAX (the only illegal business of them all )The Stimulus package ,well we call it a package cause thats what we call a mans genitals and thats what we got DICKED .And yes if welfare was done correctly we should have trained people with job skills as a prerequisite for the money and than they would be paying taxes by now .
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Post by Fire Marshal Bill on Feb 11, 2011 13:53:01 GMT -5
The Government shouldn't be allowed to run a lemonade stand , they to this date have not run anything correctly to show a profit thats why they bought out GM an other failing business that we as idiot tax payers will be forced to bankroll .I don't even think the Government could pull off a circle jerk and show a profit .Let's see the list of failures USPS ,SS , MEDICARE , WELFARE ,INCOME TAX (the only illegal business of them all )The Stimulus package ,well we call it a package cause thats what we call a mans genitals and thats what we got DICKED .And yes if welfare was done correctly we should have trained people with job skills as a prerequisite for the money and than they would be paying taxes by now . I have never been on unemployment or welfare of any kind, but I understand now you don't even have to show up to get your welfare benefits, you can to it on line, or by phone. |
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Post by getysbg on Feb 13, 2011 21:21:24 GMT -5
That's correct, FM Bill. Here in NJ, you can sign up for unemployment on line, answer your weekly survey on line and have the check direct deposited to your account. All without ever seeing anyone.
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dspitz17325
Need to Get a Life!
I came to chew bubblegum and kick some ass and i am all out of bubblegum .
Posts: 543
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Post by dspitz17325 on Feb 14, 2011 7:04:44 GMT -5
The Government shouldn't be allowed to run a lemonade stand , they to this date have not run anything correctly to show a profit thats why they bought out GM an other failing business that we as idiot tax payers will be forced to bankroll .I don't even think the Government could pull off a circle jerk and show a profit .Let's see the list of failures USPS ,SS , MEDICARE , WELFARE ,INCOME TAX (the only illegal business of them all )The Stimulus package ,well we call it a package cause thats what we call a mans genitals and thats what we got DICKED .And yes if welfare was done correctly we should have trained people with job skills as a prerequisite for the money and than they would be paying taxes by now . I have never been on unemployment or welfare of any kind, but I understand now you don't even have to show up to get your welfare benefits, you can to it on line, or by phone. The worse part is you can do that from another Country also . |
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C.O.
Member
thinblueline.com
Posts: 21
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Post by C.O. on Mar 14, 2011 12:34:08 GMT -5
How in the world can you call the USPS a falilure?? It employs the second largest work force in America, second only to Wal Mart. Every one of its employers, even though it is a low skill level job, get a family sustaining wage, one of the best health care plans there are (government run, of course), and a good retirement. Dare we compare to the level of employment offered by the bigest free market employer in the land? At the same time, they have given us a postal service that has run as flawlessly as you could ask for and reasonable prices that, thank god, are not controled by supply and demand.
Of COURSE they are loosing money now, the mail system is slowly becoming obsolete! Nothing the government can do about that, or would do about that. Unlike if there were some billionaire running it, I'm sure he woula bought enough politicians to have them vote to outlaw e-mail or something back before it even started. Its just gonna suck when the second largest work force in America goes under.
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HoneyBadger
Poster Child
HoneyBadger don't give a shit.
Posts: 373
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Post by HoneyBadger on Mar 14, 2011 18:27:52 GMT -5
Why would anyone be annoyed with the recipients of unemployment and welfare being able to receive benefit by calling in or filing online? Who designed the method? Not the recipients for sure.
As for the postal service, I appreciate it and I'd hate to see it go under.
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Post by Rainier Wolfcastle on Sept 5, 2011 17:44:02 GMT -5
Ruh Roh. 9 billion short fall? Looming default on 5 billion due to pension?
What a disaster
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dspitz17325
Need to Get a Life!
I came to chew bubblegum and kick some ass and i am all out of bubblegum .
Posts: 543
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Post by dspitz17325 on Sept 5, 2011 20:36:04 GMT -5
Why would anyone be annoyed with the recipients of unemployment and welfare being able to receive benefit by calling in or filing online? Who designed the method? Not the recipients for sure. As for the postal service, I appreciate it and I'd hate to see it go under. If you were truly broke wouldn't Internet service be one of the first things to go . |
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Post by getysbg on Sept 6, 2011 5:16:44 GMT -5
Ruh Roh. 9 billion short fall? Looming default on 5 billion due to pension? What a disaster Hey! They have to jump through hoops to close unprofitable offices, can't change their delivery days without Congressional approval, etc and so forth. Within four miles of our house there are THREE offices. One would be fine. You can buy stamps and other services on line and they'll pick up packages for delivery at your house. They're being strapped down by 19th and 20th century work rules that just don't work anymore. |
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Post by Alex Oreilly on Sept 6, 2011 5:35:32 GMT -5
It was about five years ago that the Post Office got themselves out of debt but since then Congress has been borrowing money from them and not repaying it, just like they are doing to Social Security.
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HoneyBadger
Poster Child
HoneyBadger don't give a shit.
Posts: 373
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Post by HoneyBadger on Sept 6, 2011 9:16:31 GMT -5
It was about five years ago that the Post Office got themselves out of debt but since then Congress has been borrowing money from them and not repaying it, just like they are doing to Social Security. It always goes back to the jackalopes inside the Beltway doesn't it? Yes, I know that jackalopes aren't real; neither are the denizens of public office. |
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Post by Rainier Wolfcastle on Oct 18, 2011 18:35:13 GMT -5
Postage prices go up ... again
NEW YORK (CNNMoney) -- Snail mail is about to get a little more expensive.
The price of a first class stamp is going up by one cent starting next year, the United States Postal Service said Tuesday.Forever stamps -- also called first class stamps -- will now cost 45 cents, a one cent bump. The change will go into effect Jan. 22.
That's not the only change: Postcard postage will increase 3 cents to 32 cents. Letters to Canada and Mexico will jump 5 cents to 85 cents, while letters to other international destinations will spike 7 cents to $1.05.
Already hemorrhaging cash, the move should bring in more revenue for the Postal Service.
"The overall average price increase is small and is needed to help address our current financial crisis," Postmaster General Patrick Donahoe said in a statement. "We continue to take actions within our control to increase revenue in other ways and to aggressively cut costs."
The Postal Service is in a precarious position.
USPS mail volume declined 20% in the four year period through fiscal year 2010 resulting in net losses of over $20 billion.
In fiscal year 2010, the Postal Service suffered a $8.5 billion net loss, compared to $3.8 billion the prior year.
Hundreds of thousands of postal workers could soon lose their jobs, or face drastic changes to their benefits. USPS appealed to Congress earlier this year, asking for the removal of collective bargaining restrictions in order to lay off 120,000 workers.
It also wants congressional approval to replace existing government health care and retirement plans.
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Post by SpellChecker on Oct 18, 2011 20:19:22 GMT -5
let em go. The private sector seems to be doing ok with mail/package delivery
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