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Thu Nov 15, 2012, 05:52 PM

Post office reports record loss of $15.9B for year

Source: USA Today

5:17PM EST November 15. 2012 -

WASHINGTON (AP) The struggling U.S. Postal Service on Thursday reported an annual loss of a record $15.9 billion and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in payments to avert bankruptcy.

The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand, putting it at risk in the event of an unexpectedly large downturn in the economy.

"It's critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health," said Postmaster General Patrick Donahoe, calling the situation "our own postal fiscal cliff" ...



Read more: http://www.usatoday.com/story/news/nation/2012/11/15/post-office-finances/1707437/

25 replies, 2916 views

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Reply Post office reports record loss of $15.9B for year (Original post)
struggle4progress Nov 2012 OP
Dubster Nov 2012 #1
bloomington-lib Nov 2012 #2
freshwest Nov 2012 #3
high density Nov 2012 #4
SoCalMusicLover Nov 2012 #5
Skittles Nov 2012 #6
mac56 Nov 2012 #8
Owl Nov 2012 #15
Plucketeer Nov 2012 #9
csziggy Nov 2012 #22
earthside Nov 2012 #7
hack89 Nov 2012 #11
brentspeak Nov 2012 #12
hack89 Nov 2012 #14
brentspeak Nov 2012 #16
hack89 Nov 2012 #17
brentspeak Nov 2012 #18
hack89 Nov 2012 #19
brentspeak Nov 2012 #20
hack89 Nov 2012 #23
obxhead Nov 2012 #10
brentspeak Nov 2012 #13
Dyedinthewoolliberal Nov 2012 #24
daleo Nov 2012 #21
Puzzledtraveller Nov 2012 #25

Response to struggle4progress (Original post)

Thu Nov 15, 2012, 05:56 PM

1. Spam deleted by gkhouston (MIR Team)

 

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 05:57 PM

2. good luck trying to get the people trying to kill you, to save you

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 05:57 PM

3. We need to contact people in D.C. about this, it's unjust what's been done to the USPS by Congress.

People don't think about it much, it's taken for granted and should not be eliminated. Without it, many people would be in a world of hurt, having to go to private services only. And getting served based on their ability to pay. Or not served at all.

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 05:58 PM

4. I see their service is slower than ever now

Things that once took a couple of days now take over a week. I'm not impressed.

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 06:01 PM

5. Who Cares Anymore

The people who are able to do something, could care less, so why should we?

The Postmaster must like hearing himself talk, because if he actually thinks that Congress gives a damn, or will even mention the words "postal service" between now and when they adjourn, he's obviously not very bright.

In fact, I'm willing to bet him as to that fact. I'd bet any amount that nothing happens in the next few weeks, or even the next few months, to provide help for the USPS.

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Response to SoCalMusicLover (Reply #5)

Thu Nov 15, 2012, 06:07 PM

6. you will care when they are gone

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Response to Skittles (Reply #6)

Thu Nov 15, 2012, 06:10 PM

8. this

+1000

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Response to Skittles (Reply #6)

Thu Nov 15, 2012, 08:33 PM

15. I absolutely agree

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Response to SoCalMusicLover (Reply #5)

Thu Nov 15, 2012, 06:10 PM

9. I have to wonder

just how much private courier svcs are lining the pockets of GOP folks to induce them to let the postal svcs fail.

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Response to Plucketeer (Reply #9)

Thu Nov 15, 2012, 11:37 PM

22. If you're thinking of FedEx and UPS, they now use the USPS

To do a lot of their deliveries. Both companies have extra cheap rates for services that turn over the final delivery to the USPS to deliver to your door - or to your P. O. Box.

They do that because the USPS does it cheaper than they can.

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 06:10 PM

7. Over two-thirds of this loss ...

... is the poison pill the Repuglicans foisted upon the Post Office in order to destroy it.

Much of the red ink in 2012 was due to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.


We let the Repuglicans succeed in privatizing the Post Office and we will become even more of a third world country than we are now.

Pres. Obama and Congressional Democrats need to reform the USPS, get this retirement scheme repealed and be supportive of what is still a critical part of our national communication system.

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Response to earthside (Reply #7)

Thu Nov 15, 2012, 07:35 PM

11. That was not a republican law

it was a bipartisan measure co-sponsored by Harry Waxman.

It was a mistake and needs to undone but you need to understand that most Congressional Democrats including every Senator voted for it. That is why you shouldn't be surprised if nothing happens - admitting they made a mistake is not a typical act for a politician.

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Response to hack89 (Reply #11)

Thu Nov 15, 2012, 08:01 PM

12. Hey, look everyone: hack89 is back to educate us about the USPS!

Some history concerning hack89's true feelings about USPS:



http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4985197&mesg_id=4985258

hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-05-11 01:20 PM
Response to Reply #18
19. They (USPS) are an anachronism - they need to change or step aside.

they need to face the realities of the modern world - they can remain a government service but not in their present form. I see no need to piss away money just because "we have always had a post office."




http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4985197&mesg_id=4985264

hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-05-11 01:25 PM
Response to Reply #20
23. UPS works fine for me. nt


Followed by probably the dumbest of hack89's anti-USPS postings, as exposed in the thread:



plumbob Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-05-11 03:50 PM
Response to Reply #23
46. You don't mind the 1000% to 2000% difference in prices?

Wow, we mail 20-50 packages a day, so we would go from $200-$500 a day for mail expense to $2000-$5000 a day.

Yeah, no we wouldn't. We'd fold.

........

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4985197&mesg_id=4985400

hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-05-11 03:53 PM
Response to Reply #46
48. So you would have to pay the real price of shipping

instead of the taxpayer subsidizing it? What if I rather my tax money go towards education instead?

...........

Occulus Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-05-11 04:47 PM
Response to Reply #48
58. the USPS does not receive one dime of taxpayer money. n/t


As to hack89's perpetual claim that the Postal Reform Act was "bipartisan legislation":

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=349061

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Response to brentspeak (Reply #12)

Thu Nov 15, 2012, 08:30 PM

14. Every Dem in the Senate voted for pre-payment. Everyone.

Waxman and Collins brokered the final legislation. Nowhere in your link does it say he opposed it. Nowhere.

This is what he had to say about it:

"My colleagues and I have been working for nearly a decade to reach a
bipartisan, bicameral compromise on postal reform legislation," said Rep.
Waxman. "This is a historic accomplishment and will help one of the most
revered institutions in America survive and prosper in the electronic age."



And the fact that fewer and fewer Americans actually use the USP should make it clear that they need change. They don't need to go away but they have no future in their present form.

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Response to hack89 (Reply #14)

Thu Nov 15, 2012, 08:47 PM

16. "fewer and fewer Americans actually use the USP..."


"should make it clear that they need change. They don't need to go away but they have no future in their present form."


Still batting 1.000, I see:



http://money.cnn.com/2012/04/18/smallbusiness/postal-service-closings/index.htm

U.S. Postal Service closings make small businesses nervous

By Parija Kavilanz @CNNMoney April 18, 2012: 10:48 AM ET

Tulsa, Okla., is in a similar predicament as Huntsville. Business owners and city officials are fighting to prevent their local USPS mail-sorting center from relocating 100 miles away to Oklahoma City.

Tulsa is a buzzing hub, boasting 41,000 small businesses, half of which employ fewer than 10 workers.

One of those businesses belongs to Forrester Cameron, CEO & publisher of Greater Tulsa Reporter Newspapers, who is worried that the closure of the local mail-processing plant will hurt his company.


From the reader comments:

Welcome to Dutch Harbor Alaska, Yes this small island has two post offices, and yes we ALL have to actually GO to the post office to collect or send our mail as there is no rural delivery. We use the USPS EXCLUSIVELY at my company due to cost and delivery time. You mail a 15 lb package to me Priority mail though the USPS from say...Las Vegas. It takes 4-5 days to get here ( depending on weather and IF the planes are flying, this IS an island ya know) and it will cost you about 15-20 bucks. Send the SAME package through UPS , it will cost you $110.00 to $150.00 and it will take 2-3 weeks to get here. Fed Ex? HA Same package.. $250.00 and 4-6 weeks. If you are running a business, who are YOU going to use. Could the post office charge more for their services? Yes they probably could. They could also cut costs by getting rid of the Union. Everyone in Washington thinks , " Oh we can just close a few Post Offices and save some money, Well, ( and I think I speak for a majority of the island here) that we would be LOST without our Post offices... BOTH of them. Just because closing a Post Office in a large city may be good for THAT area, does not mean it will work everywhere. And I am here to tell you, Until you have BEEN in the middle of nowhere, you have no clue what a great thing the USPS has going. No matter how long the line or wait. So for all you people crying " Just use UPS or Fed Ex... It's not happening here. Do the math, is the PO to cheap, or are you people getting raped by UPS and Fed Ex... I''ll bet its the latter.


In other words: you have no clue how business operates in the real world.

hack89: "Every Dem in the Senate voted for pre-payment. Everyone."

So what you're saying is that the bill would not have passed had only the GOP voted 'yes' for it? That's your story, right?

United States Senate composition, 2006:

GOP: 55 seats
Democrats: 44 seats

http://en.wikipedia.org/wiki/United_States_Senate_elections,_2006

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Response to brentspeak (Reply #16)

Thu Nov 15, 2012, 09:02 PM

17. Why did Dems vote for something they opposed?

We all know it was bad legislation that needs to be changed. But don't go changing history to whitewash the role Democrats played in getting it passed.

Simple challenge - show me 5 or 10 quotes from 2006 demonstrating widespread Democratic opposition to pension prepayment. Surely you can do that can't you?

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Response to hack89 (Reply #17)

Thu Nov 15, 2012, 09:25 PM

18. Pre-funding was a GOP inclusion in the bill

As was already pointed out to you. And the minority Democrats were only able to remove the union-busting wording from the legislation.

But this has also been pointed out to you several times already for the past couple of years.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4959610&mesg_id=4960877

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Response to brentspeak (Reply #18)

Thu Nov 15, 2012, 09:55 PM

19. An inclusion that no Democrat publically opposed or voted against

you are trying a little too hard. Why not spend some time and find those quotes. Surely you have actual proof that Dems opposed prepayment.

You do know the final bill was brokered by Waxman and Collins. Why did Waxman agree to prepayment?

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Response to hack89 (Reply #19)

Thu Nov 15, 2012, 11:01 PM

20. I provided examples of Democrats trying to repeal the prefunding

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4959610&mesg_id=4960877

And also proved that the Democrats had no way to prevent the GOP-created prefunding portion of the bill from being passed in the first place. Since the minority Democrats were lucky to get a seat at the table and remove the original legislation that would have immediately broken the unions and completely privatized the Service back in 2006, it makes sense that no Democrats were on record to oppose the final version of legislation when it was originally passed.

You, on the other hand, have provided nothing except a made-up challenge to prove a negative.

Caught looking stupid with your old posts concerning the USPS, it makes sense that you're reduced to diverting attention away from yourself.



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Response to brentspeak (Reply #20)

Fri Nov 16, 2012, 08:02 AM

23. My old posts do not make me look stupid

saying that the post office needs to change with the times is not some radical notion. I support the continued existence of the USP - it does need to change to reflect consumer habits and new technologies.

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 07:03 PM

10. After all the shit from politicians that I got in the mail this year

I have no idea how they had a shortfall this high.

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 08:28 PM

13. More than $11 billion of the $15.9 billion loss is caused by the prefunding mandate



http://www.washingtonpost.com/local/postal-service-reports-159billion-loss-but-record-high-worker-productivity/2012/11/15/18915930-2f64-11e2-a30e-5ca76eeec857_story_1.html

USPS Chief Financial Officer Joseph Corbett:

"It is only appropriate that Congress act to solve a postal financial crisis that legislators had a big hand in creating. More than $11 billion of the $15.9 billion loss, by far the biggest chunk, comes from required payments to pre-fund retiree health benefits. These payments are unique to the Postal Service, and they have nothing to do with mail delivery. USPS has defaulted twice on those payments since August. Without those payments, the net loss would have been $2.5 billion, not good, but more manageable.

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Response to brentspeak (Reply #13)

Fri Nov 16, 2012, 09:00 AM

24. I think this is part of a plan

to create a scenario where the PO could be privatized. You think it's bad now? (which I know you don't) Wait until we have some version like each state with it's own Postal company or a corportation awarded a nationwide mail contract and they set the rates to what they want. "oh you want to send a birthday card to your granddaughter 4 statees away? That'll be $5.00 please." You are right, repealing the pre funding is the only way to go......

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Response to struggle4progress (Original post)

Thu Nov 15, 2012, 11:29 PM

21. I believe private couriers often make use of the post office for segments of trips

I wonder the loss of the postal service would affect Amazon, for example.

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Response to daleo (Reply #21)

Fri Nov 16, 2012, 09:10 AM

25. Consumers will just pay more for deliveries.

I rarely order anything online, infact maybe once in two years. I bought the re-issue of The Cures "three imaginary boy's".

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