Tuesday, November 16, 2010

the Post Office takes $110 from the average family of four last year OR it depends on your definition of "relentless"

From the Washington Post's Ed O'Keefe (hat tip: C-J)...

The financially troubled U.S. Postal Service reported an $8.5 billion loss in the fiscal year that ended in September and said it will run out of money in 2011 if economic conditions don't improve and Congress doesn't act.

A drop in first-class mail deliveries contributed to an overall 6 billion-piece decline in mail volume last fiscal year, to 170.6 billion pieces, officials said. Financial losses also came from about $5.4 billion in obligations to pre-fund future retiree health benefits and about $2.5 billion paid to the federal government's workers' compensation insurance fund....

The Postal Service also announced Friday that it plans to deplete its $15 billion line of credit with the U.S. Treasury by borrowing the remaining $3.5 billion. Although the Postal Service does not use taxpayer funding, it has tapped the credit line since the early 1990s. Depleting it means the Postal Service probably will go broke at the end of fiscal 2011 unless Congress takes action, members of the Postal Service Board of Governors said Friday....

"We will continue our relentless efforts to innovate and improve efficiency. However, the need for changes to legislation, regulations and labor contracts has never been more obvious," Corbett said.

Relentless? Uhhh, that's a little strong!

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