The U.S. Postal Service filed its July 2009 (unaudited) preliminary financial report yesterday with the Postal Regulatory Commission. USPS reported a net income loss of $865 million (Junel 2009 was $1.3 billion). The year-to-date deficit currently stands at approximately $5.6 billion. Mail volume was down across all classes with an overall total decrease of 13.7%. The Postal Service continues to reduce its workhours with Mail Processing and Customer Services/Retail showing the highest reduction of 14.4% and 12.2% respectively.
The U.S. Postal Service said it “expects to lose more than $7 billion by the end of the fiscal year . The rising tide of red ink could leave the Postal Service with a potential cash shortfall of up to $700 million by its fiscal year-end on Sept. 30, when it must pay up to $5.8 billion to pre-fund retiree health benefits. Postal Service officials hope Congress will pass legislation that would increase its ability to borrow from the U.S. Treasury Department before the bill comes due.”
See full report (pdf) here:
If we do not do something with Health care cost. the Money that the Postal Service is required to put back will not be anywhere close to pay for retires benefits in the years ahead..
Do the math ! If the USPS did not have to PREPAY retiree health benefits, they would be profitable. If Congress does their job and repeals this mandate there is no debt and the USPS is again back in the black !
Wow, and $47 million paid in bonus money to management the first half of 2009? Sickening!!
All this talk of money lost…
How is it they can not find the ” Sick Leave ” money that mysteriously vanished?
Hmmmm .
Personnel expenses, mainly salaries and benefits, were up by 3.8% from the prior year, or $167 million. The biggest contributors to the increase in compensation were “other” employees, i.e. administrative, maintenance, postmasters, etc., where compensation was up by 33% or $245 million, and workers compensation payments, up by 17.3% or $18 million. (see page 3)