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CNN

The U.S. Postal Service continues to hemorrhage money, with a loss of $2.2 billion in the most recent quarter.

US Postal Service Continues to Lose Billions

CNN

The U.S. Postal Service continues to hemorrhage money, with a loss of $2.2 billion in the most recent quarter.

The national mail service said Tuesday that it expects to have a cash shortfall and reach its statutory borrowing limit by the time its fiscal year ends in September. That means the agency could be forced to default on some of its payments to the federal government.

Patrick Donahoe, the Postmaster General, said the service is still seeking changes to federal laws that would allow it to change its business model and potentially save enough money to avoid a default.

β€œThe Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens,” Donahoe said in a statement.

At issue is a 2006 law requiring the service to pay between $5.4 and $5.8 billion into its prepaid retiree health benefits each year. In addition, the agency is seeking Congressional approval to eliminate Saturday mail service.

The postal service has estimated that moving to five day service could save $3.1 billion. But the Postal Regulatory Commission, which oversees the agency, issued an advisory in March that put the savings at a much more modest $1.7 billion.

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10 Comments

  • sam

    thats what happens when you have government running any service/business. they dont need to show a profit and have no idea how to run a business. obama and his socialists should keep away from the private sector including healthcare to avoid this in the future

  • CHJCC To Recue

    Can’t Chanina Sperlin, Eli Cohen and Zaki Tamir save the day for them?

    Perhaps if they bring in Mulla Chanin they can straighten things out, just like they claimed Chanin did for them at the CHJCC.

  • Shomer Shabbos

    The United States postal service becoming “Shomer Shabbos” sounds like a good idea. It would make it much easier for Jews to work for the postal service.

  • chresident

    well duh they will be losing if they dont care about the customers. If u dont treat people nicely they will not patronage u. It a disgrace that the mail gets lost or is not delivered and they just dont care about your mail. What comes around goes around

  • Critical of NY Judges

    A lot these fidcal problems can be traced to continous management mismanagement over the past decades.

  • FedEx for me please

    Frum Jews always worked for the PO. R’ Sholom Ber Schneerson (father of Mendel and Yossi) did as did Lipa Schmeltzer’s father.

  • Danny

    The 11225 & 11213 Stations probably account fro significant portions of the loss. The service is so lousy that they must be fronting for some other business.

  • to commenter # 3

    I understand you have a personal vendetta regarding said persons in your post. But can you please explain to me why you feel it’s important to vent your loshon hara and rechilus about other yidden into an article that had nothing to do with them?

    Is this (talking negatively about other yidden, regardless of how they wronged you personally, or the community as a whole)what you do for a living?

    Does this make you any better of a person?

    Please think twice next time before posting any comments.