Congress Leaves USPS Hanging
Hemorrhaging $25 million a day, Postmaster warns of 'accelerated cost-cutting.'
Add the USPS to the list of unfinished business left by the now-adjourned 112th Congress. As it muddled its way through negotiating terms for avoiding the fiscal cliff, the legislation the Postal Service was looking for fell by the wayside, prompting Postmaster General Patrick Donahoe to voice his disappointment in an official statement.
Even with hearings, lobbying from ABM and MPA and a raft of restructuring initiatives done over the last two years, the USPS is still in major crisis mode. And any major operational or pricing changes going forward could have a significant impact on publishers.
Ranks have been reduced by 60,000 carriers and 70 facilities have been consolidated, but the USPS is still losing massive amounts of money, to the tune of $25 million per day. And it’s already defaulted on its $11.1 billion Treasury payments and has no money left to borrow. "As we look to the coming year, we are on an unsustainable financial path," warns Donahoe. "We will be discussing with our Board of Governors a range of accelerated cost-cutting and revenue generating measures designed to provide us some financial breathing room."
For the full statement, click here.