According to published reports the United States Postal Service is insolvent. Bankrupt. According to those reports, the USPS is losing $25 million a day. Yes, a day. When the Congress is brought into the bailout talks, and they will likely come sooner than later, it will cost taxpayers $34 billion to bailout the USPS.
Remember back in December when everyone else was focused on Christmas preparations, when the Postmaster General Patrick Donahue proposed closing more than half of mail processing centers? That would have cut 28,000 jobs, and overnight delivery of first class mail would have come to a halt. It also would have shuttered 3,700 local post offices and put the brakes on Saturday delivery. Do you have any recollection of that discussion. Well, whether you do or not, the United States Senate gave the postmaster general a resounding no!
The Senate’s unwillingness to save $20 billion flew in the face of the post master general’s plan to make cuts as proposed by a bipartisan group of senators led by Joe Lieberman and Susan Collins.
Well, the USPS, which lost 25 percent of its revenues over the last six years, will continue to look at a lot of red ink. That is unless the House bill is passed which would allow the postmaster general to cut services, close post offices, raise fees and force existing postal employees to pay for their own retirement. That notion faces opposition by Senate and House Democrats.
If there is no compromise, what then? The USPS could begin closing post offices as early as next week, according to published reports. That’s not a solution, but an avoidance of responsibility by our elected officials.