The news continues to be bad about the U.S. Postal Service. It was reported the past week that the USPS reached its $15 billion borrowing limit from the U.S. Treasury. That’s never happened before.
USPS has added $2.4 billion to its debt since June 30, pushing the agency to its borrowing cap, according to The Wall Street Journal.
It’s no surprise since we all have known from previous reports how bad the financial situation of the postal service is. It continues to lose money. It’s burdened with a loss in revenue and ongoing costs. It has increased rates, and more hikes are coming, and the service hasn’t gotten any better. It has not been able to match its competition in service and rates.
The fact is the postal service is a victim of mistakes it made in the past that it is trying to deal with now, and isn’t having much success. It is overburdened with a pension program that requires huge prepayments that are adding to its costs. USPS has tried to deal with its loss of revenue and high overhead by making adjustments, but it’s too little too late.
The past week we learned of a cost-saving measure that hit the New Haven post office. Hours during the week will be cut by two hours a day while Saturday hours will remain the same. This is the second blow to New Haven residents. Earlier, in 2010, USPS carriers in New Haven were required to drive to the Washington post office to sort and pick up mail. The USPS said that is saving money. A USPS spokesperson said there are no plans to close the post office now but admitted that could happen if post office sales drop, and hours could be reduced further in the future.
Other smaller post offices in this area face the same situation as New Haven.
It is impossible to see a light at the end of the USPS tunnel!