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Posted: 6:26 p.m. Thursday, Nov. 15, 2012
By Jamie Dupree
For more than a year, the Postal Service has been asking Congress, and asking Congress, and asking Congress to pass a reform law that would allow major internal changes in order to stem billions in losses.
Congress has yet to act, and the red ink keeps flowing at record rates.
On Thursday, the Postal Service reported that it lost $15.9 billion in Fiscal Year 2011, over three times as much as the $5 billion lost the year before.
And the forecast is for more of the same, unless the Congress acts.
“It’s critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health,” said Postmaster General Patrick Donahoe.
"As the nation creeps toward the 'fiscal cliff,' the U.S. Postal Service is clearly marching toward a financial collapse of its own," said Sen. Tom Carper (D-DE), who has been urging action in Congress on a reform bill for months.
"The Postal Service's financial crisis is growing worse, not better. It is imperative that Congress get to work on this issue and find a solution immediately," Carper added.
The Senate did its job on a Postal Reform bill back in late April, but the House has yet to even bring a reform measure to the floor for votes.
What does the Postal Service want? First, officials want Congress to do away with a requirement that forces the Postal Service to pre-fund billions in retiree health and pension benefits, saying without that, the USPS would only have been $2.5 billion in the red last year.
Other ideas from the Postal Service include:
* Moving to five day delivery, by chopping off either Saturday delivery or one day during the week
* Letting the Postal Service offer "non-postal products and services"
* Streamlining the decision-making process on pricing and product decisions
* Ordering arbitrators to "take into account the financial condition of the Postal Service" when making decisions during labor negotiations
Without major changes, the Postal Service is basically teetering on the edge of bankruptcy; if it weren't for the terrible financial situation of the federal government, then there would be a bailout most likely by the Congress.
But with huge deficits at the federal level, there isn't going to be a Postal bailout.
And there's no guarantee of a Postal Reform bill either.
So, the Postal Service goes forward with what officials say is just four days of cash reserves.
Jamie Dupree is the Radio News Director of the Washington Bureau of the Cox Media Group and writes the Washington Insider blog.
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