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Saturday Mail Service May Be Stamped Out

Congress always has shot down such requests

February 7, 2013

\WASHINGTON (AP) — Saturday mail may soon go the way of the Pony Express and penny postcards....

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(31)

walksabout

Feb-09-13 12:25 AM

well. there will always be funding crisis until the elected draw a line in the sand and prohibit the world using The United States as thei 911 first call responder for every annoyance.

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icecream

Feb-08-13 3:18 PM

Subject: The Post Office isn't broke -- it's being robbed.

*The United States Postal Service has just announced that due to budget shortfalls, mail will no longer be delivered on Saturdays starting in August.

*It's true the post office faces financial challenges. But the financial problems are in large part a direct result of an ONEROUS and ILL-CONSIDERED 2006 LAW called the "Postal Accountability and Enhancement Act" (PAEA) that mandates pre-funding the postal service RETIREE HEALTH CARE and PENSION benefits for 75 YEARS INTO THE FUTURE — something that NO OTHER government agency or private company is forced to do.

*The vast majority — 85% — of the budget red ink comes from this pre-funding mandate. The remaining 15% can be managed through additional cuts--attrition!!!

*The PAEA was created by Republican Congress intent on goal:***Killing a government service for the sake of proving that government can't work.

***Don't let Congress kill the Post Office.

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walksabout

Feb-08-13 3:15 PM

how much savings from employee being exempt from all traffic violations ?

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walksabout

Feb-08-13 3:13 PM

the postal service pays much more share of retirees health insurance than other agencies ? don't they ? like a post master pays 30 cents a quarter for insurance other retires pay 150 bucks weekly ?

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promo61

Feb-08-13 9:17 AM

Recently, this argument has been reiterated by the USPS’s chief financial officer, Joseph Corbett, who said the USPS’s “business model, quite frankly, is broken. It doesn’t work for a declining volume scenario.” The argument that the USPS’s business model is “broken” and cannot cover its operating costs without being allowed to enter nonpostal lines of business appears to rest on a fundamental assumption: that over the long run the USPS’s operating costs will continue to outstrip its operating revenues in perpetuity; and that this lag of revenue growth behind cost growth is the result of declining mail volumes (and the resultant revenues). Hence, the need for the USPS to reap revenues by offering new nonpostal services.

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promo61

Feb-08-13 9:15 AM

Unfortunately, our business model remains broken, even with the positive pricing and product changes in the new law. With the diversion of messages and transactions to the Internet from the mail, we can no longer depend on printed volume growing at a rate sufficient to produce the revenue needed to cover the costs of an ever-expanding delivery network.

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promo61

Feb-08-13 9:15 AM

The USPS argument for the need for greater authority to sell nonpostal services rests on a broader argument—that the USPS’s business model is “broken.” Just four months after the enactment of the PAEA, Postmaster General Potter testified before Congress that, [u]nfortunately, significant changes in the communications and delivery markets have made continued success under the original law problematic. That is why our Nation is fortunate that so many have recognized this and acted to preserve affordable, universal Postal services. I appreciate the efforts of this committee, both houses of Congress, Comptroller General David Walker, the administration, and the President’s Commission on the U.S. Postal Service. It is my hope that 30 years from today a future Postmaster General will sit at this table and report on the progress made possible by the Postal Accountability and Enhancement Act of 2006.

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promo61

Feb-08-13 9:05 AM

meaning that the USPS had to make a large annual payment that neither provided operational benefits nor generated revenues

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promo61

Feb-08-13 9:04 AM

Finally, passage of the Postal Civil Service Retirement System Funding Reform Act of 2003 (PCSRSFRA; P.L. 108-18; 117 Stat. 624) helped sow the seeds for reform. The PCSRSFRA was enacted after it was discovered that the USPS was over-funding its retirees’ pensions. The act reduced the USPS’s pension outlays. However, it shifted the costs of postal employees’ military service-related pension costs from the U.S. Treasury to the USPS—a $27 billion obligation. The PCSRSFRA also required much of the reduction from the previous pension outlay levels to be put toward lowering the USPS’s debt and funding an escrow account. The law did not, however, dedicate the escrow fund to any particular use (e.g., postal worker benefits),

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promo61

Feb-08-13 9:02 AM

Additionally, the USPS, its board of governors, the Government Accountability Office (GAO), mailers’ organizations, postal labor unions, and most recently a presidential commission said that the Postal Reorganization Act of 1970 no longer provided a viable business model. The ratesetting process was criticized for preventing the USPS from responding quickly to an increasingly competitive marketplace. Critics also argued that long-standing political and statutory restrictions impeded efforts to modernize the mail processing network and close unneeded facilities.

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promo61

Feb-08-13 9:01 AM

Source: Congressional Research Service report 12/14/2009. The Postal Accountability and Enhancement Act: Overview and Issues for Congress

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promo61

Feb-08-13 9:00 AM

A number of factors encouraged the movement for postal reform. Perhaps foremost were the financial challenges of the USPS. First class mail use was declining as customers substituted electronic alternatives, such as e-mail and online bill paying, for hard-copy letters. Yet the USPS’s costs—about 76% of which were labor-related—rose with the addition of 2 million new addresses each year and mounting obligations for USPS future retiree health benefits.

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promo61

Feb-08-13 8:58 AM

A decade later, Congress enacted the PAEA, which made over 150 changes to postal law. Some of the more significant alterations are defining the term “postal service”; restricting the USPS’s authority to provide nonpostal services; altering the USPS’s budget submission process; requiring the USPS to prefund its future retiree health benefits by establishing the Postal Service Retiree Health Benefits Fund; and replacing the USPS’s regulator, the Postal Rate Commission, with the more powerful Postal Regulatory Commission.

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promo61

Feb-08-13 8:57 AM

Legislatively, the pursuit of reform of the U.S. Postal Service (USPS) began during the 104th Congress, in 1996. A number of factors encouraged the movement for postal reform. Perhaps foremost were the financial challenges of the USPS.

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daWraith

Feb-08-13 6:04 AM

Creamed,

"Tell us, rocket scientist, WHERE DOES THE MONEY COME FROM to run the USPS when it has a DEFICIT every year??????"

Sure, let them GO PRIVATE and see who invests in their multibillion NEGATIVE CASH FLOW BUSINESS!

Just answer the question or STFU!

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icecream

Feb-08-13 3:41 AM

Wrat-face it's you has no freaking CLUE what you are babbling about...

As I said, you don't know JACK, if he hit you on the head with all the rules and regulations from congress to the Post Office... Furthermore--I would like to hear how your business or all businesses would do if Congress mandated that all businesses had to pay 75 years forward of retirement benefits...

That law passed by a vengeful congress in 2006.. will hurt small business and people living in rural areas..

Congress is willfully trying to destroy the USPS, thereby, putting millions of people out of work, and destroying small businesses everywhere, that depend on mailing flyers, ads and coupons.

Right now, UPS and FEDEX- combined, carry about 1/3 of of all package deliveries... They carry no mail, no ads, no newspapers And they are not equipped to do so..

I want the Post Office to shake off this tyrant boss of Congress and go private!! Then you will see A great postal service with a work ethic, b

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walksabout

Feb-07-13 11:49 PM

it is a money loser. the postman always reports any new concrete work done on weekend to the tax accessor.

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walksabout

Feb-07-13 11:47 PM

we need to ban those cards anyway. the put a guilt trip on you and you are frced to put money inside for people you don't really like much at all. Never send cards with checks when you are drunk.

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walksabout

Feb-07-13 11:45 PM

actually. if you banned importation of Holiday and special occasion cards from China, the postal service would have no reason to exist.

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daWraith

Feb-07-13 8:17 PM

WVcoughie, Solyndra doesn't deliver mail either any more, but they still ran off with a half BILLION of our tax money.

Well, maybe not YOUR tax money but ....

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daWraith

Feb-07-13 8:14 PM

Creamed, BWAHAHAAH! They ONLY lost $2.4 BILLION instead of 7 BILLION?????

Do you have a freaking CLUE what you are babbling about?

Tell us, rocket scientist, WHERE DOES THE MONEY COME FROM to run the USPS when it has a DEFICIT every year??????

Anybody who says USPS doesn't get funding from the taxpayer is FULL of IT!!!

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icecream

Feb-07-13 8:05 PM

You don't READ or know Jack! Even Boehner recognizes that Congress is the problem..Rescind the 2006 law--then no problem... In fact, the Postal Service has had to adapt to changing times ever since Benjamin Franklin was appointed the first postmaster general by the Continental Congress in 1775. Twice-a-day delivery was cut to one in 1950 to save money.

But change is not the biggest factor in the agency's predicament – CONGRESS IS. The majority of the service's RED INK comes from a 2006 LAW FORCING it to PAY about $5.5BILLION A YEAR into FUTURE RETIREES health benefits, something NO other AGENCY does. Without that payment – $11.1 BILLION in a two-year installment last year – and related labor expenses, the mail agency sustained an operating loss of $2.4 billion for the past fiscal year, lower than the previous year.

CONGRESS also has stymied the service's efforts to close some post offices in small towns.

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daWraith

Feb-07-13 5:07 PM

Obamacare: QUIT while you are ahead!

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daWraith

Feb-07-13 5:06 PM

Greeceman, they are asking for BILLIONS in loans to cover their red ink.

Loans from WHOM??? Banks will not loan that kind of money to a LOSER like the USPS.

ONLY JOHN Q TAXPAYER will get stuck with their FAIL!

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dyingov

Feb-07-13 1:50 PM

No spending cuts in the near future! Every politician has his/her "own" little pet projects....

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