The fate of the United States Postal Service, hangs by a thread, and without a quick move from Congress, they won't make it till winter. Postmaster general Patrick R. Donahoe said, declining mail volume and the growing expense of prefunding retiree health benefits, if left unchecked, will hit $10 billion dollar deficit.
The Postal service is requesting Congress to intervene, and restructure their existing regulations. They have asked to break union contracts and lay off workers, and to loosen the requirements of prefunded retiree's health costs. Proposals for cost cutting measures include eliminating Saturday delivery, closing up to 3,700 post offices, laying off 120,000 workers, pulling workers out of expensive pension plans.
Obama's administration, gave the USPS, an extension on their required pre-funded health payment, that was due at the end of September. The administration said that a plan would be decided upon in the upcoming months. US office of Personnel Management Director John Berry, said the White House would release a detailed plan as part of a package in the upcoming months. Mr. Donahoe claims that even with the extension, the service would only make it until next summer at the continued rate of decline.
In another strange management of money scenario, the USPS, has a $6.9 billion holding tank of money in which they overpaid into their Federal Employees Retirement Service, and an estimated $50 to $75 billion to the Civil Service Retirement System. Carefully treading on delicate waters, the directors are asking Congress for not a bailout of government money, but to be allowed access to their own money, and a cease on the prepaid health care costs; which they are required by Congress to prefund 75 years in advance.
Since 2006, mail volume has declined by 22%. More people are paying their bills electronically, reading catalogs online and emailing versus traditional mail. This decline, along with the prefunded health cost, has left a page full of red.
The fact is, the USPS makes up 7% of the United States gross domestic product, and employees millions of workers. To allow the fall of this establishment, could greatly threaten our very delicate economy. Fears of political gridlock over their looming fate have Republicans and Democrats going throat to throat. At campaigning and reelection time, candidates and lawmakers have tough decisions to make. Within their districts, these candidates may face angry constituents over post office closures. Even the smallest of changes in ending Saturday delivery, has stirred debate with the newspaper and magazine industry. Allowing the post office to fail would hurt many, mostly senior citizens, who typically don't use new age technology.
Some members of Congress are calling on Americans to help save the USPS by rekindling the love of letter writing. This lost art, has sadly been replaced with impersonal texts and emails. There is something about receiving a letter, that sparks a chord of happiness from within my being. The USPS is indeed a national treasure. To see the end of a service that defines America, would be a great loss to everyone.
In an effort to utilize our great United States Postal Service, I ask "Would the post office closure affect your life…and how?"- write me a stamped letter at
The Prophetstown Echo
P.O Box 7
Prophetstown, IL
61277