GAO: Postal Service in financial trouble
USPS faces 'significant financial challenges,' report says.
It may not be surprising to many, but the United States Postal Service is in pretty bad economic shape.
The Government Accountability Office added the USPS to its list of troubled agencies, citing a potential loss of $7 billion this year.
"There are serious and significant structural financial challenges currently facing the Postal Service," the GAO said. USPS raised the price of stamps by 2 cents in May and has taken steps to close some post offices around the country to try to reduce costs.
The Postal Service is the latest agency on the GAO's biennial list. The GAO started tracking agencies that are prone to "fraud, waste, abuse and mismanagement," as well as those in need of "broad-based transformation" since 1990. About 30 other agencies are also on the GAO's troubled list.
"New technology is profoundly affecting services in both the private and public sectors, including traditional mail delivery. Compounded by the current recession, the volume of mail being sent is dropping substantially," Gene L. Dodaro, acting comptroller general, said in a statement.
In 2008, mail volume fell by 9.5 billion pieces to a total of 203 billion pieces; it is expected to fall by 28 billion pieces, or 14%, this year to a total of 175 billion pieces.
The Postal Service did not deny its problems.
"The GAO High Risk List announcement accurately reflects our current financial reality," it said in a statement. "Securing the fiscal stability of the Postal Service will require continued review of retiree health benefit prefunding, as well as gaining flexibility within the law to move toward five-day delivery, to adjust our network as needed, to develop new products the market requires and to work with our unions, mailers, stakeholders and Congress to meet the challenges ahead."
I have a comment in regard to the postal service going to a 5 day work week. First why don't they report all the jobs that will be lost when they do this. This is truck drivers, clerks and mail carriers. Living in a small town and working the 8-5 I have the same hours as the Post Office. When they close on Sat. there goes my only time to make there. Also did the Postmaster General disclose "HIS" bonus for last year?
It's always the little guy that gets hurt.
The postal service keeps cutting back service, soon only Monday through Friday delivery, prices keep going up, fewer people, poor service.
On the other hand other entities keep improving service, expanding coverage and pricing keeps steady.
I know the postal service must serve areas that are not profitable, but they better figure out how to do that and make money or shut the doors.
Solution, figure out what it is costing and charge that amount. The cost may be $3.00 to mail a letter, but you get what you pay for.
When figuring out how much to charge they must take into consideration how much business they will lose and that cost will be a part of the change.
That solution can't be much worse than what has been going on.
Not a fan of the post office, but I know it is necessary. I Think--It soon may be a thing of the past.
FED EX runs a profit. UPS runs a profit. MY post office SUCKS, can't run a profit, with NO competition. AND THEY WANT TO RUN OUR HEALTH CARE SYSTEM? HAHAHAHAHA
MY Post office has STUPID rules, like "can't do this after 3, can't break $100 bill, can't take my credit card,,," AND THEY WANT TO RUN OUR HEALTH CARE? HAHAHAHAHA
Recently I got a letter for a department of the FTC in Washington and they sent it to me via FEDEX instead of USPS. The government should govern. Leave the letter and package business - along with all other business to the private sector.
Okay, so where's the list"?? Why does the USPS refuse to specify which Post Offices have been selected for closure?
In reality, the Post Office cannot deliver its goods for what it costs to deliver them. Maybe they can do it with just having their first class letters. It makes me sick that every time that any package is shipped through the Post Office it is subsidized by my tax payer dollars. Consumer Reports periodically will do a cost comparison and the differences are telling.
The other issue is the PO cross subsidizes their monopoly with their letters to shift money to their money losing package operation. They should get out of the package business. They are not any good at it and and I cannot stand it when they take money away from one of above ground operations just to lose it.
I do not ship packages through the PO for this reason. We use UPS because of the better service. Yes it does cost more but you get what you pay for.
The United States has the finest, most efficient and most reliable postal system in the world.
Postal Service employees are some of the most dedicated and hardest-working citizens in the country. They deserve our expressions of gratitude and respect.
Americans enjoy the lowest postal rates of any other nation on the planet.
Maintaining a balanced operating budget and high levels of efficiency are difficult tasks that become even more challenging as certain uncontrollable basic operating costs continually increase beyond all reasonable projections.
To Karaoke Kid,
I did do some thinking . . .
NO, the box wasn't block with a trash can or vehicles. My driveway is 50 ft long & it wasn't trash day.
Yes, I did shovel out the mail box and the driveway, then I went to work. The county plow can in after I left.
The carrier used the blocked box as an excuse.
If the mail carrier can haul is behind out of the truck to put a note in my box, why couldn't he have left the mail?????
"to dismount the vehicle and go to you 'blocked' box" . . .
fancy words for hauling your behind out of . . . .
I live rural, the mail carrier did this to the whole street, he must have saved a lot of time NOT delivering the mail. The whole street around the mail box isn't 8 ft. wide.
And I stay at my business until the work gets done, quite often that's past 9 - 5.
Doesn't it take more time when you go back to the hub & return all the mail that wasn't delivered? Doesn't that mail get re-sorted in the next delivery day? Talk about wasting time, get it done the first time.
You must agree with all the other rants about mismanagement, bad unions & poor service since you picked up on that little part on my rant.
Any more excuses ????????
Theirs a void in the US Postal Service and that is low cost international shipping labels for light weight items. And there is a void in Health Care and that is the lack of public or private insurance coverage for Nursing Homes and Home Health Care.
If your makeing $30.00 extra bucks a month with what you sell on eBay not including gas, time and shipping materials . You cant afford to pay stamps.com $17.99 a month to print labels. Now if i was a eBay Power seller and selling 400+ items a month and makeing $400.00+ extra bucks a month i could see paying stamps.com $17.99 a month or Pitney Bowes for their service. But to start selling 400+ items a month and to make $400.00 extra a month i have to sell my items internationally and at $10.00+ minimum shipping cost per item people wont buy the $3.00 to $10.00 3Oz to 7Oz items.
My problem running a small home based business is when I ship items. In the US I can use First Class Mail which cost about $1.50 each item to ship this also includes delivery confirmation and a tracking number. But when I want to ship something out of the country I have to have Customs label and according to PayPal delivery confirmation and a tracking number. To print a label with all this info on it with the exception of the customs info that I still seem to have to fill out at the post office I have to ship my items using Priority Mail or Express Mail which cost $10.00+ to ship. To ship the same item out of the US using First Class Mail International cost $3.00 plus the customs label. If the post office could add customs info and a tracking number and delivery confirmation to the first class mail international label it would make it a lot easier and cheaper for me to ship items out of the country.
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