Options for the Postal Service

As Pushing the Envelope noted 8 weeks ago, the Postal Service is facing a severe financial challenge. There are concerns the Postal Service could end this year without enough cash to pay all of its bills. The Postal Service attributes its problems to two major factors: (1) the long-term erosion of high-margin First-Class Mail volume because of electronic diversion and (2) drastic volume losses due to the current recession. The Postal Service has asked Congress to


The Postal Service’s Financial Crisis

The Postal Service lost $2.8 billion in fiscal year (FY) 2008. This year, the Postal Service is concerned its loss could grow to $6 billion or more. Since the Postal Service is limited by law from borrowing more than $3 billion per year and the Postal Service started 2009 with only $1.4 billion cash on hand, there is a danger the Postal Service could face a liquidity problem as payroll and benefits alone are about $54 billion a year.



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Recent Comments

  • 3 days 5 hours ago
    Recycling at the Lansing, Michigan Processing and Distribution Center has been eliminated for plastic bottles, small electronic components and batteries. We have been told to, "Just throw it...
  • 3 days 7 hours ago
    If the post office wants to have a dress code for their employees that is fine, how ever I have noticed for several years now, the mail carriers will make smart mouth comments to customers about the...

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