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. Learn more about Friends of the NewsHour. 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. "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. 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. He joined FNC in 1997 as a Los Angeles-based correspondent. 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. White House rejects bailout for Postal Service battered by coronavirus. It pleaded for more freedom to raise stamp prices to help keep pace with consumer demand for ever-quicker deliveries from online shopping. 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. 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. Powered and implemented by FactSet Digital Solutions. Posted on August 10, 2017 August 10, 2017 by 21cpw. Hope Yen, Associated Press. Find information on our most convenient and affordable shipping and mailing services. That means the pensions are funded at 95 percent of their projected liability. “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. Adam Clark Estes at Vox writes—How the Biden administration can save the Postal Service. 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. More recently, it began a pilot program this holiday season to provide cheap next-day service with packages delivered Sundays to people’s homes. 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. Still, its parcel success hasn’t translated to profits. Last year, it tallied a $5.6 billion loss. To become financially stable, the Postal Service is also urging Congress to provide it relief from the mandate to prefund retiree health benefits. 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. 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 USPS goes to every residence six days a week. Quotes displayed in real-time or delayed by at least 15 minutes. But adding billions of dollars to an already-beleaguered program is simply the wrong solution to a longstanding problem. 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. Use our quick tools to find locations, calculate prices, look … The U.S. by Jesse Nankin and Krista Kjellman Schmidt, ProPublica, Updated April 15, 2009. 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. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. The future of the U.S. USPS Financial Problems The Postal Service’s finances are a disaster. 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. Nobody else can say that.” Delivery Boy? 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. This material may not be published, broadcast, rewritten, At this stage, even the Postal Service admits it needs help. Please check your inbox to confirm. ©2021 FOX News Network, LLC. “No other shipper delivers as many e-commerce packages to the home.”. As for the challenges of getting such an overhaul passed during an election year, Issa says the time is now. 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. “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. WASHINGTON — The U.S. The $2.2 trillion relief bill (CARES Act) gave a $10 billion loan to the USPS, but that does not solve any underlying problems. Legal Statement. 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. 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 … WASHINGTON — The beleaguered U.S. Post your thoughts and opinions here about current Postal employee topics. 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 U.S. Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. By a 62-37 vote, senators approved a measure which had divided mostly along rural-urban lines. 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 … “We cannot generate enough revenue or cut enough costs to pay all of our bills.”. 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. All rights reserved. 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. © 1996 - 2021 NewsHour Productions LLC. The article went on to say Amazon strategically bulks up its own parcel volume in easier-to-serve, dense ZIP codes that are more … A new analysis explains just how much the USPS benefits from the subsidies it receives from the federal government. Postal Service just revamped its priority mail program to raise revenue and drive new growth in its package delivery business. Mutual Fund and ETF data provided by Refinitiv Lipper. Mutual Fund and ETF data provided by Refinitiv Lipper. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. Mike Emanuel currently serves as chief congressional correspondent for FOX News Channel (FNC). Subscribe to ‘Here's the Deal,’ our politics newsletter. Delaware Democratic Sen. Tom Carper and Oklahoma Republican Sen. Tom Coburn have a bill with bipartisan support in the Senate. 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. ... Federal Soup » AGENCIES/ORGANIZATIONS/MILITARY » Postal Employees » USPS BAILOUT COMING TODAY? Photo by Andrew Harrer/Bloomberg via Getty Images. All Rights Reserved. It continues to hemorrhage money and routinely reports big losses when the agency announces its financials at the end of each quarter or year. Analysts have cheered the Postal Service’s promise in the digital age. ... A bailout for the Postal Service seems almost like … "That kind of message will cause people to make a reform this year. “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: Postal Service needs a bailout, or at least some vision for its future after the coronavirus pandemic. Postal Service nevertheless is in need of a bailout. The GAO has reported that many experts consider at least 80 percent prefunding to be sound for government pensions. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. 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’s not known by how much. Democrats and U.S. Inauguration of Joe Biden and Kamala Harris, Hope Yen, Associated Press The price of a first-class stamp, now 49 cents, is slated to increase by one penny in January because of inflation. or redistributed. Revenue came to $69.6 billion, down from $71.5 billion last year. "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. 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. But what’s missing from those receiving a federal bailout is the U.S. 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. 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. Only the $10 billion loan to the Postal Service made it into law, over Mnuchin's objections. Postal Service … The commission might limit how high prices could go, but the cost of a first-class stamp could jump. The Postal … Postal Service officials are seeking a $75 billion bailout from taxpayers. by Jesse Nankin and Krista Kjellman Schmidt, ProPublica, Updated April 15, 2009. Market data provided by Factset. The Postal Service’s finances are a disaster. The circles below represent the relative size of each U.S. government bailout of … 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. Thank you. Postal Service to recover overpayments into the federal pension system. 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. ©2021 FOX News Network, LLC. 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. This material may not be published, broadcast, rewritten, or redistributed. It might feel like first-class postage is going up every few weeks, but the U.S. 2017 Edition; Order 2018 Edition; Benefits Guide; E-Newsletter; Forum; Blogs; Online Education; Pay. 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. It reported a $540 million net loss in the latest fiscal quarter, and for 2017 it reported a $2.7 billion net loss. Postal Service could be headed for a bailout if budget woes are not addressed with significant reforms, argued an expert Friday. 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. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. Postal Service, as Trump refuses to help the agency in what could become a … 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. Night Owls is a themed open thread appearing at Daily Kos seven days a week. Medicare cannot afford a reckless USPS bailout. "Much of what I have to do is to get my fellow Republicans to swallow the pills of five-day delivery -- going to the curb for delivery, right-sizing the size of the post office, quite candidly changing their medical retirement system to make it streamline with the rest of the workforce in America, by putting them on Medicare and out of a very expensive private program that you and I pay for," Issa told Fox News. Postal Service just revamped its priority mail program to raise revenue and drive new growth in its package delivery business. Mike Emanuel reports from Washington, D.C. To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012. Legal Statement. The USPS and some congressional leaders are … Quotes displayed in real-time or delayed by at least 15 minutes. Less than $13 billion, but not exactly chump change and also getting bigger every year, all without the coronavirus. 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. 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! “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. Powered and implemented by FactSet Digital Solutions. 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. 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. The Senate offered a lifeline to the nearly bankrupt U.S. Through rain, sleet, hail and even a pandemic, mail carriers serve every address in … "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. All rights reserved. But adding billions of dollars to an already-beleaguered program is simply the wrong solution to a longstanding problem. While they seek to blame the COVID-19 coronavirus pandemic, the facts are plain. The U.S. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. The circles below represent the relative size of each U.S. government bailout of … You've successfully subscribed to this newsletter! 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. Market data provided by Factset. House Speaker Nancy Pelosi’s newly announced "relief" proposal, titled the “ Take Responsibility for Workers and Families Act,” cancels the U.S. ', 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. 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. 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