Thursday, March 21, 2019

USPS Could Need Bailout in 2 Years or Less if Fiscal Problems Not Addressed, Panel Agrees

Brian McNicoll Mar 21, 2019

There was a lot to agree on at the Senate Homeland Security and Governmental Affairs Committee hearing on the Postal Service last Tuesday.

The senators and witnesses generally agreed the situation was bad – the Postal Service’s liabilities outstrip its assets by $63 billion; it has $140 billion in unfunded liabilities. They agreed the Postal Service can’t be privatized, reforms can’t harm rural areas at the expense of cities, and the systems by which the Postal Service invests in employee pensions and allocates costs between its monopoly items, such as first-class mail, and its competitive products, such as package delivery, are not close to adequate.

They agree business as usual is not option, that mail volume has declined 42 percent in the last 10 years, and first-class mail – the Postal Service’s most profitable product – is off a third. They agreed the relentless financial losses – the Postal Service lost nearly $6 billion last year and expects to lose nearly $7 billion this year– cannot continue.........To Read More.....

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