Posted on 09/01/2011 7:40:54 AM PDT by martosko
U.S. Postmaster General Patrick Donahoe has said that the United States Postal Service will default on its obligations to the federal government on September 30, at the end of the current fiscal year.
Now the House Committee on Oversight and Government Reform has launched a website to educate the public about the Postal Service’s financial troubles and some possible solutions. The Postal Service lost $8.5 billion in the last fiscal year.
Oversight committee chairman Rep. Darrell Issa, Republican from California, and other committee members have said the result will likely be a taxpayer bailout.
(Excerpt) Read more at thedc.com ...
Fund to aid injured postal workers at risk if USPS defaults
August 29, 2011
A fund that compensates federal employees for work-related injuries will run out of cash in the last quarter of 2012 if the U.S. Postal Service defaults on an upcoming $1.2 billion payment, according to the Labor Department.
The mail carrier, which has been losing billions of dollars each year, has more than 560,000 full-time employees, the largest pool of workers covered by the Federal Employees’ Compensation Act.
Agreed!
U.S. Postal Service Wants to Cut 220K Jobs; Seeks Approval From Congress
August 12, 2011
The U.S. Postal Service wants approval for a plan to eliminate 220,000 full-time jobs and 300 processing centers by 2015 and will seek approval from Congress for the move.
The agency is trying to move fast to shore up its money-losing business, avoiding default in late September.
The postal service receives no taxpayer funds and expects to lose $8 billion or more this year, as its business declines amid more people using online bill pay and e-mail. The postal service needs to cut its payroll to 425,000 jobs and take over its retirement and health benefits instead of participating in federal programs, Postmaster General Patrick Donahoe told Reuters.
But Congressional approval is needed for either step. Donahoe saaid the agency hopes to reach a deal with Congress by the end of September to give the agency more control over its finances.
The postal service has threatened to default by the end of September if Congress does not step in with help.
If Congress does address the issue — as the USPS is asking — it is expected to be politically sensitive, since both plans including the job cuts and benefits change would face severe opposition from postal worker unions which have contracts that ban layoffs.
Thanks for the reminder, I have heard of this issue, and it sure is another example of that old government saying, “we are here to help”.
Writing on the wall has been there for the USPS for a while now.. but let me ask this...
When I grew up, the postman ALWAYS was in their full uniform, shirts button, tucked in, they, on the surface at least, appeared to take pride in themselves and their appearance.
Today, most postmen I see look like slobs, rarely have a full uniform, or if they do its not work properly, shirts unbutton, untucked, etc etc etc. Now I am sure that if I looked at the wages and benefits they make today its more even adjusted for inflation than it was in the 70s...
So why are they allowed to look so damned unprofessional?
Yes...this, indeed, is how this once great country ended up with the prince of fools in the driver’s seat...
THINK!
Semper Watching!
*****
Agreed,
The USPS cannot cease to exist, and while EMAIL and online bill pay have reduced the volume and use of the system, it is still a lifeline and will never be able to be completely eliminated for reasons you have mentioned and others.
Its a neccessary system, and it should NOT EVER be allowed to not exist, what it needs to do is restructure its spending, and get rid of the union nonsense. Not opposed to a living wage, but compensation is completely out of whack with the private sector equivalent.. like a LOT of “government” jobs.
One could argue that the constitutional requirement is not as great as that:
“To establish Post Offices and post Roads;” need not mean all that it seems to entail today. Perhaps we could pare down on the carrier routes. Want daily delivery, pay for a po box at the Post Office and go get it on your own.
Daily delivery, or a delivery person for every possible route are not mentioned, for instance.
We do need mail service for international relations as well, but again, not necessarily what we currently have.
“So why are they allowed to look so damned unprofessional?”
No pride in the job or themselves.
We have three or four different people bringing our mail to the office. You never know who is going to show up these days. Use to be the same person always with consistency, no longer. And a couple of them are filthy.
Maybe I don’t know what a monopoly is...I thought it was a situation in which there was only one entity able to provide the service. I’ll have to go back and check my vocabulary.
The mail boxes are part of the services provided by the post office, so you cannot put non-US mail in those boxes. But you could certainly walk up to the house with your Japanese mail and put it in an alternate box if you wished to do so. Newspapers around the country with rural routes do this all the time.
I have no idea what the neighborhood watch thingy has to do with monopolies...I’m stumped.
So - the last decade +, the reported red ink/deficits the USPS has been running have been funded by what? Loans? From who? That money doesn’t just come from nowhere.
The Constitution requires a postal service??? What article?
Article I, Section 8, Clause 7 of the United States Constitution, known as the Postal Clause or the Postal Power, empowers Congress “To establish Post Offices and post Roads”.
Aren't you just too cute by half, bless your heart?!
By your definition, AT&T was not a monopoly. And at least with AT&T, "their" infrastructure was not protected by the threat of a felony conviction.
“Too cute by half????”
Well, those are the postal regs...I don’t understand the anger here...you folks must have lost a lot of mail.
Apparently trying to explain how the postal system was administered makes you angry. Have you a felony conviction?
The entire Postal service has always been funded by its sales of postage. They are only now going in the red because the sales are not there, and they will have to make major changes. They needed to apply for permission to set their rates, as they do now.
I have no idea what you are talking about, because ATT was broken up by court order because it was a monopoly. The high cost of capitalization and the constant undercutting and buyout of any competing system made competition impossible. The court ordered that the competitors could use the infrastructure. The situation is not analogous to the postal service, which have as their only exclusive space the box. If you don’t believe me, the regs are there for you to look up.
Have a nice day, and don’t let the post office ruin your day - life is too short.
“Too cute by half????”
Well, those are the postal regs...I don’t understand the anger here...you folks must have lost a lot of mail.
Apparently trying to explain how the postal system was administered makes you angry. Have you a felony conviction?
The entire Postal service has always been funded by its sales of postage. They are only now going in the red because the sales are not there, and they will have to make major changes. They needed to apply for permission to set their rates, as they do now.
I have no idea what you are talking about, because ATT was broken up by court order because it was a monopoly. The high cost of capitalization and the constant undercutting and buyout of any competing system made competition impossible. The court ordered that the competitors could use the infrastructure. The situation is not analogous to the postal service, which have as their only exclusive space the box. If you don’t believe me, the regs are there for you to look up.
Have a nice day, and don’t let the post office ruin your day - life is too short.
They were stated as prospective debts, funded by a timely increase in postal rates and budget adjustments.
I know it is hard to accept, but this is one of those anomalies that actually funded itself until this year, when the raising of rates is unlikely to make up the shortfall. It will be interesting to see if Obama will fund the shortfall.
I regularly use private delivery services. Didn’t know they were all illegal.
Wow. When did you stop beating your wife?
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