The Post Office funds itself.
POSTAL SERVICES SEEKS CHANGES
The Postal Service said it had made "significant cost reductions in areas within its control" by 2011 but claimed it needed Congress to approve several other measures to boost its financial outlook.
Those measures include eliminating mandated retiree health benefit pre-payments; forcing the federal government to return Civil Service Retirement System and Federal Employee Retirement System overpayments to the Postal Service and allowing the Postal Service to determine the frequency of mail delivery.
POSTAL SERVICE NET INCOME/LOSS BY YEAR
- 2006 - $900 million surplus
- 2005 - $1.4 billion surplus
- 2004 - $3.1 billion surplus
- 2003 - $3.9 billion surplus
Why Does the Us Postal Service Lose Move Every Year?
You are leaving out the context - a manufactured crisis by Republicans.
A Manufactured ‘Crisis’: Congress Can Let The Post Office Save Itself Without Mass Layoffs Or Service Reductions
Both the
news media and a number of
politicians have claimed recently that the U.S. Postal Service (USPS) is in “crisis,” and that it is necessary to lay off thousands of workers or
reduce service in order to make the post office fiscally stable. And the Post Office itself has proposed
laying off as many as 120,000 employees and withdrawing from federal health care plans in order to navigate upcoming fiscal crunches.
It is true that USPS is facing fiscal challenges — it lost
nearly $20 billion over the last four years and is at risk of not being able to meet a
$5.5 billion mandated payment to the Treasury at the end of this month (which has been put off six weeks thanks to the last continuing resolution in Congress).
But what has been lost in the political debate over the Post Office is
why it is losing this money. Major media coverage points to
the rise of email or Internet services and the inefficiency of the post model as the major culprits. While these factors may cause some fiscal pain, almost all of the postal service’s losses over the last four years can be traced back to a single, artificial restriction forced onto the Post Office by the
Republican-led Congress in 2006.
At the very end of that year, Congress passed the
Postal Accountability and Enhancement Act of 2006 (PAEA). Under PAEA, USPS was forced to “prefund its future health care benefit payments to retirees for the next 75 years in an astonishing ten-year time span” — meaning that it had to put aside billions of dollars to pay for the health benefits of employees it
hasn’t even hired yet, something “that
no other government or private corporationis required to do.”
As consumer advocate Ralph Nader noted, if PAEA was never enacted, USPS would actually be facing a $1.5 billion surplus today:
More: A Manufactured ‘Crisis’: Congress Can Let The Post Office Save Itself Without Mass Layoffs Or Service Reductions