But adding billions of dollars to an already-beleaguered program is simply the wrong solution to a longstanding problem. Hope Yen, Associated Press. Quotes displayed in real-time or delayed by at least 15 minutes. Claim: The U.S. economic downturn due to the COVID-19 coronavirus pandemic in early 2020 was forcing the United States Postal Service to close. Only the $10 billion loan to the Postal Service made it into law, over Mnuchin's objections. It might feel like first-class postage is going up every few weeks, but the U.S. Analysts have cheered the Postal Service’s promise in the digital age. This material may not be published, broadcast, rewritten, or redistributed. ... Federal Soup » AGENCIES/ORGANIZATIONS/MILITARY » Postal Employees » USPS BAILOUT COMING TODAY? “The Postal Service continues to win e-commerce customers, grow our package delivery business and increase market share,” Brennan said, attributing its strength in part to affordable pricing compared to rivals UPS and FedEx. Last year, it tallied a $5.6 billion loss. That was better than a $5.6 billion loss in the prior year but was mainly due to fluctuations in interest rates that reduced workers’ compensation expenses. The Postal Regulatory Commission will issue a decision in the coming weeks that could give the Postal Service more flexibility to raise prices beyond the rate of inflation, marking the biggest change in its pricing system in nearly a half-century. The circles below represent the relative size of each U.S. government bailout of … Legal Statement. That means the pensions are funded at 95 percent of their projected liability. Mike Emanuel reports from Washington, D.C. The Senate offered a lifeline to the nearly bankrupt U.S. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. Committee Chairman Darrell Issa, R-Calif., has ideas for how to fix it, and says part of that is convincing members of his own party that six-days-per-week mail delivery doesn't make sense. Frank Todisco, chief actuary for the Government Accountability Office, told a House committee last week that the agency had $100 billion in debt and unfunded health benefit liabilities at the end of the last fiscal year. https://www.pbs.org/newshour/nation/u-s-postal-service-marks-11-straight-years-of-financial-loss, “Our financial results will continue to deteriorate and likely at an accelerated rate.”, U.S. “No other shipper delivers as many e-commerce packages to the home.”. The USPS 2012 10-K states that the total projected liability for the two pension funds combined is $300 billion, and there’s currently $284 billion in the fund. The Postal Service, an independent agency, is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes. The $2.2 trillion relief bill (CARES Act) gave a $10 billion loan to the USPS, but that does not solve any underlying problems. The price of a first-class stamp, now 49 cents, is slated to increase by one penny in January because of inflation. Postal Service reported a financial loss Tuesday for the 11th straight year, citing declining mail volume and costs of its pension and health care obligations even as it predicted another strong holiday season of package deliveries. WASHINGTON — The beleaguered U.S. To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. © 1996 - 2021 NewsHour Productions LLC. "That kind of message will cause people to make a reform this year. The White House’s 2019 budget proposal addresses the ailing finances of the Postal Service and says that reforms are needed to allow it to “meet its financial and service obligations with business revenue, as intended, rather than a taxpayer-financed bailout.” USPS Financial Problems. White House rejects bailout for Postal Service battered by coronavirus. USPS Financial Problems The Postal Service’s finances are a disaster. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. You've successfully subscribed to this newsletter! Legislation in 2006 required the Postal Service to fund 75 years’ worth of retiree health benefits, something that neither the government nor private companies are required to do. “These numbers are beyond troubling,” said Art Sackler, manager of the Coalition for a 21st Century Postal Service, a broad trade group that includes mailers such as Amazon and the National Retail Federation. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. "There is no better time than in an election year for people to call up and say I don't want to be paying out of my general tax revenue for somebody else's junk mail being delivered," Issa said. Medicare cannot afford a reckless USPS bailout. More recently, it began a pilot program this holiday season to provide cheap next-day service with packages delivered Sundays to people’s homes. Night Owls is a themed open thread appearing at Daily Kos seven days a week. Mail volume is now at a 29-year low, and for the past 10 years, USPS recorded annual losses as high as $15.9 billion. A United States Postal Service worker pushes a mail cart past a floodwall on Treat Ave in the Mission District of San Francisco, Calif. on Friday, Oct. 27, 2017. The audit explains that the Postal Service lost $62.4 billion between FY 2007 and FY 2017, with $54.8 billion of these losses relating to retiree health care prefunding that it had been required to pay down as part of Postal Accountability and Enhancement Act of 2006. Revenue came to $69.6 billion, down from $71.5 billion last year. 2017 Edition; Order 2018 Edition; Benefits Guide; E-Newsletter; Forum; Blogs; Online Education; Pay. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. ', Michael Goodwin: I'm ignoring Biden's 'unity' talk, here's why you should, too, DOJ IG investigating whether officials tried to overturn 2020 election, Hawley calls for ethics investigation into Dems who filed complaint against him. The Senate proposal would move to five-day delivery after 2017, keep all processing facilities open for at least two more years, and allow the U.S. Post your thoughts and opinions here about current Postal employee topics. Still, its parcel success hasn’t translated to profits. Postal Service nevertheless is in need of a bailout. ... A bailout for the Postal Service seems almost like … The USPS and some congressional leaders are … Less than $13 billion, but not exactly chump change and also getting bigger every year, all without the coronavirus. Postal Service (USPS) crates sit on the floor at the Brookland Post Office in Washington, D.C., U.S. No customer data was stolen in a recent data breach, USPS officials say. At this stage, even the Postal Service admits it needs help. The article went on to say Amazon strategically bulks up its own parcel volume in easier-to-serve, dense ZIP codes that are more … But adding billions of dollars to an already-beleaguered program is simply the wrong solution to a longstanding problem. Postal Service is up in the air, as President Donald Trump continues to starve the institution of financial assistance. The U.S. While they seek to blame the COVID-19 coronavirus pandemic, the facts are plain. To become financially stable, the Postal Service is also urging Congress to provide it relief from the mandate to prefund retiree health benefits. As for the challenges of getting such an overhaul passed during an election year, Issa says the time is now. He joined FNC in 1997 as a Los Angeles-based correspondent. It pleaded for more freedom to raise stamp prices to help keep pace with consumer demand for ever-quicker deliveries from online shopping. "Despite our efforts and our hard work, we cannot return the organization to profitability or secure our long term financial outlook without the passage of comprehensive reform legislation," Jeffrey Williamson, United States Postal Service executive vice president, told the House Oversight and Government Reform Committee recently. Postal Service could be headed for a bailout if budget woes are not addressed with significant reforms, argued an expert Friday. Market data provided by Factset. ©2021 FOX News Network, LLC. The audit explains that the Postal Service lost $62.4 billion between FY 2007 and FY 2017, with $54.8 billion of these losses relating to retiree health care prefunding that it had been required to pay down as part of Postal Accountability and Enhancement Act of 2006. by Jesse Nankin and Krista Kjellman Schmidt, ProPublica, Updated April 15, 2009. Welcome to USPS.com. U.S. Postal Service, as Trump refuses to help the agency in what could become a … “There are 7.5 million private sector jobs that depend on the postal system, and these jobs are at risk unless Congress takes action on postal reform.”, Left: Nobody else can say that.” Delivery Boy? This material may not be published, broadcast, rewritten, Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. This evolution, which pits postal management against postal unions and the USPS’s bloated workforce, is nevertheless a vital step toward staving off bankruptcy and a taxpayer bailout. “The USPS goes to every residence six days a week. The U.S. Business Insider cited a 2017 Citi analysis which calculated the USPS was undercharging Amazon by $1.46 per package, which a Morningstar analyst said still holds true today. The commission might limit how high prices could go, but the cost of a first-class stamp could jump. Mutual Fund and ETF data provided by Refinitiv Lipper. Postal Service to recover overpayments into the federal pension system. A new analysis explains just how much the USPS benefits from the subsidies it receives from the federal government. It continues to hemorrhage money and routinely reports big losses when the agency announces its financials at the end of each quarter or year. The future of the U.S. Delaware Democratic Sen. Tom Carper and Oklahoma Republican Sen. Tom Coburn have a bill with bipartisan support in the Senate. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. In introducing the Postal Reform Act of 2017, lawmakers hope to use Medicare funds to bail out the retirement funds awash in red ink at the USPS. Mike Emanuel currently serves as chief congressional correspondent for FOX News Channel (FNC). Postal Service reported revenue of $69.6 billion for fiscal year 2017 (October 1, 2016 - September 30, 2017), a decrease of $1.8 billion compared to the prior year. "Not only does our bill modernize the Postal Service and give it the tools and resources it needs to make tough but necessary business decisions to cut costs and increase revenue, but it also directly addresses the source of the Postal Service's two biggest financial liabilities -- retiree pension costs and health care costs -- so taxpayers won't be left on the hook for these obligations in the future," Carper told Fox News. Powered and implemented by FactSet Digital Solutions. Market data provided by Factset. A United States Postal Service worker pushes a mail cart past a floodwall on Treat Ave in the Mission District of San Francisco, Calif. on Friday, Oct. 27, 2017. Powered and implemented by FactSet Digital Solutions. Postal Service reported revenue of $69.6 billion for fiscal year 2017 (October 1, 2016 - September 30, 2017), a decrease of $1.8 billion compared to the prior year. It reported a $540 million net loss in the latest fiscal quarter, and for 2017 it reported a $2.7 billion net loss. Please check your inbox to confirm. Postal Service … Photo by Andrew Harrer/Bloomberg via Getty Images. The Senate proposal would move to five-day delivery after 2017, keep all processing facilities open for at least two more years, and allow the U.S. By a 62-37 vote, senators approved a measure which had divided mostly along rural-urban lines. U.S. Treasury staff analysis found that in 2017, the per-employee cost for USPS was $85,800, compared to $76,200 for UPS and $53,900 for FedEx. The U.S. The U.S. by Jesse Nankin and Krista Kjellman Schmidt, ProPublica, Updated April 15, 2009. Without help, “our financial results will continue to deteriorate and likely at an accelerated rate,” said Postmaster General Megan J. Brennan. Postal Employees. WASHINGTON — The U.S. But what’s missing from those receiving a federal bailout is the U.S. Posted on August 10, 2017 August 10, 2017 by 21cpw. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Even though the USPS hasn't been making those payments, it continues to book the theoretical cost as an expense — $16.8 billion since the start of the 2017 … The Postal Service lost $8.8 billion in FY 2019, it lost $3.9 billion in FY 2018, and it lost $2.7 billion in FY 2017. Learn more about Friends of the NewsHour. The GAO has reported that many experts consider at least 80 percent prefunding to be sound for government pensions. It’s not known by how much. Then in 2017, it transitioned to using the PSRHBF to pay benefits, and was required to begin paying into the fund the normal cost (annual benefit accrual for active employees) as well as a … All rights reserved. As Director of Planning and Policy Analysis for the Office of Personnel Management from 2010 to 2017, he managed OPM’s relationship with the U.S. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. All Rights Reserved. Postal Service just revamped its priority mail program to raise revenue and drive new growth in its package delivery business. Inauguration of Joe Biden and Kamala Harris, Hope Yen, Associated Press Postal Service just revamped its priority mail program to raise revenue and drive new growth in its package delivery business. Postal Service officials are seeking a $75 billion bailout from taxpayers. Postal Service on Wednesday, voting to give the struggling agency an $11 billion cash infusion while delaying controversial decisions on closing post offices and ending Saturday delivery. Legal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper. Postal Service needs a bailout, or at least some vision for its future after the coronavirus pandemic. The Postal Service’s finances are a disaster. “Understanding that universal service (to every U.S. ZIP code) is a requirement, it may need to look different as we emerge post pandemic,” he said. The Postal … Find information on our most convenient and affordable shipping and mailing services. ©2021 FOX News Network, LLC. WASHINGTON — The U.S. The 2017 loss came after a double-digit increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total postal revenue. The 2017 loss came after a double-digit increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total postal revenue. Mail volume fell by roughly 5 billion pieces, or 3.6 percent, as people in the digital age rely more on email for online bill payments. The circles below represent the relative size of each U.S. government bailout of … Through rain, sleet, hail and even a pandemic, mail carriers serve every address in … House Speaker Nancy Pelosi’s newly announced "relief" proposal, titled the “ Take Responsibility for Workers and Families Act,” cancels the U.S. Report warns USPS may not be able to pay health benefits, Cops: Lazy NY mailman trashed 1K letters, packages, Sen. Rand Paul clashes with ABC's Stephanopoulos: 'You're forgetting who you are as a journalist! Postal Service’s financial straits could disrupt daily mail delivery, Postal Service may get more freedom to raise stamp prices, Dog attacks of U.S. postal workers highest in three decades. Adam Clark Estes at Vox writes—How the Biden administration can save the Postal Service. With the holiday season approaching, Brennan said, the Postal Service added hours to include early morning and evening package deliveries and was expanding service on Sundays. Use our quick tools to find locations, calculate prices, look … Democrats and U.S. or redistributed. Subscribe to ‘Here's the Deal,’ our politics newsletter. “We cannot generate enough revenue or cut enough costs to pay all of our bills.”. 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