Tag Archives: first class mail

Finance Wizards in the Senate Vote to Throw $11B to Post Office

The whiz-bang financial analysts of the United States Senate approved a measure that would give the Postal Service $11B (that’s Billion with a “B”), freeze most facilities closings that were planned to reduce costs, along with implementation of 5-day delivery. For the first time ever, I have to side with the Postmaster General on this issue:

“It is totally inappropriate in these economic times to keep unneeded facilities open. There is simply not enough mail in our system today,” the Postal Service’s board of governors said in a statement. “It is also inappropriate to delay the implementation of five-day delivery.”

This is coming from the guy who’s captain of the sinking ship, and throwing a life-preserver isn’t going to help this vessel – plugging holes and bailing is a better course. In fact, the Senate bill explicitly prohibits the USPS from making most of its cost-cutting measures for YEARS to come:

The Senate bill would halt the immediate closing of up to 252 mail-processing centers and 3,700 post offices, part of a postal cost-cutting plan to save some $6.5 billion a year. Donahoe previously said he would begin making cuts after May 15 if Congress didn’t act, warning that the agency could run out of money this fall.

The measure would save about half the mail processing centers the Postal Service wants to close, from 252 to 125, allowing more areas to maintain overnight first-class mail delivery for at least three more years. It also would bar any shutdowns before the November elections, protect rural post offices for at least a year, give affected communities new avenues to appeal closing decisions and forbid cuts to Saturday delivery for two years.

Got that?  The Senate wants to spend $11B this year to prevent the USPS from saving at least $6.5B every year, and start paring down its operation.  Since the Post Office is a creation of the Legislature, they require its authority to do anything, even save money.  Where the hell does this $11B come from, anyway?  The USPS reminds us on its website that

The Postal Service receives NO tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. We are required by law to cover our costs.

Unless Congress says so. I smell election-year hijinks and 500,000 solid Democratic votes.  There are a nice bunch of Postal employees in swing states  according to workforce size by state listings. California, New York, and Texas are the states with the largest postal workforce, but filling in behind is : #4 Florida: 32,000, #6 Pennsylvania 27,600, #7 Ohio: 22,300, : #10 North Carolina 15,200 ,and  #12: Virginia 15,300. Interesting. It remains to be seen what the House of Representatives does with this next.