A Postal Service overhaul bill that changes the agency's business structure and benefits system was approved Thursday by the Senate Homeland Security and Governmental Affairs Committee, while the agency suffered another multi-million dollar quarterly loss.
The Postal Service ended fiscal 2013 with a loss of $5 billion, down from a $16 billion loss in fiscal 2012, say USPS financials released Nov. 15. Still, that marks seven consecutive years that USPS incurred a loss, a Postal Service release on its financial statement (.pdf) says. The Post Office has lost money for seven consecutive years, the Postal Service acknowledges in a release on its financial statement (.pdf).
Reforming Postal Service health care so retirees utilize Medicare would save USPS money and help keep the agency solvent, USPS Postmaster General Patrick Donahoe told a Senate panel Sept. 26.
The Postal Service needs legislation to bring the agency back to financial solvency as it faces the prospect of having to ask for an emergency rate hike to keep it afloat, Postmaster General Patrick Donahoe told the Senate Homeland Security and Governmental Affairs Committee.
The Postal Service made changes to its Priority Mail including day-specific delivery as well as free insurance and tracking, which is expected to boost shipping revenue, an Aug. 14 USPS statement says. The plan is expected to bring an estimated $500 million per year in additional revenue.
The Postal Service posted a net loss of $740 million in the third quarter of fiscal 2013, which brings this fiscal year's net loss to $3.9 billion, an Aug. 9 USPS press release says. The losses were less than the first two quarters, which saw $1.3 billion and $1.9 billion in losses respectively.
Postmaster General Patrick Donahoe voiced his support for establishing a chief innovation officer at the Postal Service during a hearing of the House Oversight and Government Reform Committee July 17.
The $1.9 billion quarterly loss was up from the previous quarter, when the Postal Service lost $1.3 billion. But compared to the same period last year, its quarterly loss shrank by about 40 percent. The agency lost $3.2 billion in the second quarter of last year. The majority of the $1.9 billion loss during this latest quarter could be attributed to prefunding the retiree health benefits program, which cost the Postal Service $1.4 billion.
Lawmakers can make modest reforms to the Postal Service soon or be left with only severe options later, Postmaster General Patrick Donahoe said April 19. By the end of 2017, taxpayers might have to spend $58 billion to prop up the Postal Service as its debts accumulate, he said.
The U.S. Postal Service needs to cut Saturday delivery, revise its employee healthcare plan and give more power to the board of governors to be financially sustainable, Postmaster General Patrick R. Donahoe said in an April 17 House Oversight and Government Reform Committee hearing. This comes just a week after USPS backed off its fight for a modified 5-day delivery schedule that was set to start in August and would save USPS $2 billion annually, Donahoe said.