Sunday, July 26, 2009

Post Office Eliminates Mail Delivery To Balance Budget and Save Jobs

July 25, 2009: The Washington Post reported (link) that “the Postal Service, which is projecting a $6 billion shortfall by the end of September despite a recent postage rate increase, will go to Congress this month to seek emergency relief, looking to cut home mail delivery from six days a week to five. Already, the Postal Service has cut hours at hundreds of post offices across the country …. It has consolidated routes …. Still, said Postmaster General John E. Potter, the service is in "acute financial crisis."

July 26, 2011 -- The Obama administration’s head of the Postal Service announced today the elimination of delivery service.

The Postmaster General stated that she regretted having to take this drastic action, but said that the Postal Service had no other alternative in light of continued decline in mail volume and escalating budget deficits. This fiscal year, the Post Office is slated to lose upwards of $20 billion, despite reducing mail delivery to once a week 7 months ago and a budget infusion of $15 billion from President Obama’s discretionary TARP Fund.

In a press conference yesterday, the Postmaster General said “I hope that once mail delivery is eliminated entirely that the Postal Service will be able to balance its budget within 3 years, given the 25% budget increase Democrats passed this year for the Department.” She went on to say “I am proud of the efforts of the Obama Administration and the Democrat Congress to preserve the thousands of Post Office jobs, since the loss of even some of them would hurt the economy, and although I regret having to permanently discontinue mail delivery service, the Post Office is working hard to identify additional efficiencies to finally balance our budget.”

President Obama issued a statement today, saying “I do not stand with those who would do nothing to finally stop the Post Office budget deficits and those who are indifferent to saving the thousands of jobs there. As I have said before, I am committed to balancing budgets and saving jobs. As for the loss of delivery service, this is a time for shared sacrifice and we must all do our part in these difficult times.”

John M Greco