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GAO: Postal Service in financial trouble

USPS faces 'significant financial challenges,' report says.

By Elizabeth Strott Jul 29, 2009 7:51AM

© U.S. Postal ServiceIt 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."

726Comments
Mar 3, 2010 11:48PM
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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.

Aug 26, 2009 3:10PM
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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.

Aug 26, 2009 2:01PM
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I have been hearing about the losses the postal service is wracking up, when to my surprise one Sunday morning, I saw one of the Sunday morning talk shows in Washington presented by "The US Postal Service".  What the hell is that.  Losing 9 billion and sponsoring television programs?  Only in America.
Aug 2, 2009 6:18PM
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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

Aug 2, 2009 3:57PM
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The USPS is an example of why government does not need to be involved in running a business.   This will be similar to health care.

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.

Aug 2, 2009 2:27PM
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I am a ups driver and in rural areas I get pkgs to their porch. Only reason the usps carrier doesn't is because they have a supervisor telling them they can't because it takes too much time.Most carriers are honest hardworking employes and with anyother company you have your bad apples
Aug 2, 2009 1:49PM
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I worked for the Post office for about 12 years and the reason they are in such bas shape is floor supervisors and tour management they force overtime when an entire tour comes in for there scheduled work day then you have 2 tours overlapping to do 1 job. get a handle on that then see if there is a money saving opportunity..
Aug 2, 2009 1:49PM
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I am a UPS driver and my dad worked for the post office for 34 years. I have a good idea what's going on and it's the incompetent upper management running the show. Please don't blame the letter carrier,if they were running the show the post office would be in much better shape.
Aug 2, 2009 10:31AM
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Okay, so where's the list"??  Why does the USPS refuse to specify which Post Offices have been selected for closure?

Aug 2, 2009 10:08AM
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Like any other big organization, the USPS has problems. Believe me, your local mail carrier is just as frustrated as you about a lot of what you are complaining about. Yes, we make a decent wage and have great benefits, unlike many other Americans. but most Americans don't have to basically 'destroy' their bodies just to get their work done. Most mail carriers suffer from carpal tunnel, severe pain in wrists, arms elbows and shoulders from the normal work day stress of repetitive actions, none of which management is willing to even acknowledge. Most of these problems could be even just helped, if only we could change the way we are ordered to do things...but management comes down with rules of how every single carrier must do his or her job, and just try to make even simple changes in how you do it and you get written up for 'failure to obey a direct order'. Yes those are the exact words. Another problem is upper management making rules that if they were actually delivering the mail to you, they would realize is just ridiculous and does not make sense at all. Yet we are required to do it like they order, without question. Just one more thing: much of what the public is complaining about, forwarding mail, the toll free number to call with problems, and much more, is contracted outside of the USPS, in other words, NOT done by anyone that works for the Post Office.  We get frustrated that carriers are not allowed to help forward the mail for our customers, but we rarely even know when they move, anymore, because we are not allowed to know anything about their move, and find out about it only days later.  Please, just take some time someday and ask your mail carrier about their concerns, and you will be amazed that they really do care and are just as frustrated as you are. Don't blame them for situations beyond their control. 
Aug 2, 2009 9:40AM
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Five day delivery might cut costs on the carrier side, but the clerk craft would still be working 7 days a week to keep the mail processing caught up. The majority of clerks work between the hours of 3:00 PM and 6:00 AM. As to the comments about the Pony Express , pay their rates ( $5 a half ounce, in non-inflation adjusted dollars ) and the USPS would be fine.
Aug 2, 2009 9:00AM
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Matt, sorry to break it to you, "bro", but,no, the government does NOT have to make up the difference and by current law it can't. The Postal Reorganization Act of 1974 set up the USPS a self sufficient quasi government agency that has to pay its own way. And if you think that UPS and FEDEX could make money delivering mail that they wounldn't be clamoring to Congress for the right to do so ? They can't make money going door to door every day either.
Aug 1, 2009 11:35AM
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Its us normies who don't work for the post office that know how crappy it is. I paid over $12. to send something Certified along with Signature Card & Return Signature Card. This all cost alot but worth it and necessary in some cases. This was all on July 15 and to this date I have not received my Signature Card back. Go to local post office & politely ask about this and all she could say was "Go on the internet" and walked away! Went on internet and all it said was "Notice Left". I know this person has already gone to their post office with that slip cause they called and said the check was in the mail (famous last words) so they at Internet Post Office can't even update their site. Thank God UPS & FedEx don't treat their customers that way.
Jul 30, 2009 7:05PM
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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.

Jul 30, 2009 3:47PM
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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. 

 

Jul 30, 2009 11:48AM
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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 ????????

Jul 30, 2009 11:36AM
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I have only mailed one item this year. I pay all my bills online. I get half of my bills via email. All my correspondence is via email. Sorry but the post office is going the way of the dodo bird. The age of electronic payment and messaging is hear. It is time to do away with the post office completely. FEDEX and UPS can take care of the packages.
Jul 30, 2009 10:18AM
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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.

Jul 30, 2009 9:51AM
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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.

 

Jul 30, 2009 9:33AM
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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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