July 29, 2020 at 4:36 p.m. UTC The Treasury Department agreed to loan the U.S. You don’t require full funding in advance, including pensions for people who haven’t been born, let alone hired, unless you want to make it difficult to run the organization. The drive to fully privatize the USPS started in 1970. Postal Service 'Unsustainable,' Says GAO. But politicians hamstrung the agency. 2 Compounding the Postal Service’s debt problems has been a lack of revenue growth. In addition to horrific work conditions, the USPS has deliberately hidden COVID-19 cases from the workforce. Posted: Mar 24, 2020 10:14 AM. Alongside privatization, the wages, benefits, and work conditions of postal workers have long been under assault, with the collusion of the postal worker unions. They gained traction again in August 2020 when Postmaster General Louis DeJoy, a Trump campaign megadonor, was called to testify before Congress over … The answer can be traced back to a … The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. CORRECTION: This article originally stated that the Post Office implemented a 5 percent increase in … When you were, say, 25, would you expect in ten years to have put aside full retirement savings for yourself and your children and maybe even grandchildren? My credits include Fortune, the Wall Street Journal, the New York Times Magazine, Zenger News, NBC News, CBS Moneywatch, Technology Review, The Fiscal Times, and Inc. Get. According to its website, the USPS handles 48 percent of the world’s mail volume, generated $71.1 billion in revenue in 2019 and—if it was fully privatized—would be number 44 in the Fortune 500 list of the world’s largest companies. Postal workers work with faulty and outdated equipment; according to documents obtained by Motherboard, USPS delivery trucks burst into flames at a rate of one truck every five days. March 24, 2020 04:05 PM ORDER REPRINT ... eliminate the Postal Service’s current debt and require it to prioritize medical deliveries, according to the release. The legislation, which was welcomed by the Postal Service, faces an uncertain future in the Senate. House passes legislation to ease USPS debt burden Feb 7, 2020, 10 AM The House of Representatives passed the legislation Feb. 5 with bipartisan support. The Postal Service is in dire financial straits because its revenues are insufficient to support its operational costs and liabilities. It was 44% of the 2020 federal discretionary budget. In its 2020 fiscal year report, the USPS stated that mail volume had declined by 13.8 billion pieces, accelerated by the pandemic. “USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual … While there are many factors that led to the USPS’ current state of debt, there are two primary reasons why that debt has now balloomed. On the plus side, package volume grew by nearly 1.2 billion pieces — 18.8% — compared to the previous year due to the surge in e-commerce. If you were lucky enough these days to have a real pension and moved from Company A to Company B, the pension benefits at B wouldn’t be a continuation of those at A. The Treasury Department announced Wednesday it has reached an agreement to lend up to $10 billion to the U.S. Postal Facts 2020 provides the public with information about the Postal Service. 04/16/2020 11:12 AM EDT. They gained traction again in August 2020 when Postmaster General Louis DeJoy, a Trump campaign megadonor, was called to … Washington Postal Scene by Bill McAllister The House of Representatives has taken a first step toward easing the United States Postal Service’s growing debt to the Department of the Treasury. My credits include Fortune, the Wall Street Journal, the New York Times Magazine, Zenger News, NBC News, CBS Moneywatch, Technology Review, The Fiscal Times, and Inc. Get my free newsletter at https://eriksherman.substack.com. While USPS’ total number of employees today is about 650,000, about 20 percent work part-time and are essentially low-paid and disposable. More than 25 percent of votes in recent elections were … NEW YORK, NEW YORK - AUGUST 05: A United States Postal Service (USPS) mail box stands in Manhattan ... [+] on August 05, 2020 in New York City. By Veronica Mohesky September 16, 2020 U.S. Find information on our most convenient and affordable shipping and mailing services. Chart 1. WASHINGTON – The U.S. Unfortunately, losses are the rule rather than the exception for the agency. Logistics and delivery workers are among the most powerful workers on the planet, and their power has grown as COVID-19 renders their services all the more essential. (Photo by Spencer Platt/Getty Images), America's Top Givers: The 25 Most Philanthropic Billionaires, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Had Your Income Drop In 2020? Although effective March 29, 2020, the Postal Service will incorporate these revisions into the next editions of the ELM and Handbook F-101, which are available on the Postal Service … (Let’s remember, by the way, that the odds of voting fraud occurring are so low that it’s more likely you’d be struck by lightning or attacked by a shark.). The new USPS still had to provide uniform service and pricing. However, the post office can’t change that model without congressional approval. If banks couldn’t be bothered with them, postal banking, with branches everywhere, was available. Additionally, with 2020 being an election year, many people rely on the USPS for mail-in voting. The facts in this publication may be reproduced for the purpose of stating the fact itself, and in a business, informational, academic context and the like, and in the body of text discussing factual subject matter relevant to the fact being presented. Over the past decade, the debt and unfunded liabilities like pensions and health care have outpaced the … The Postal Service’s $15 billion debt is a direct result of the mandate that it must pay about $5.6 billion a year for 10 years to prefund the retiree healthcare plan. ... Why the USPS is deep in debt… July 29, 2020 at 4:36 p.m. UTC The Treasury Department agreed to loan the U.S. Postal Service has the most cash on hand, though debt still looms If Your Time is short The United States Postal Service had … All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. Last year, the U.S. The Senate is gone, which means anything the House passes will sit doing nothing, and Donald Trump has turned the screws on a potential deal in part, as he’s admitted, over USPS funding and his claims of widespread fraud with mail-in voting. In 2006, the Postal Accountability and Enhancement Act (PAEA) ordered the USPS to pre-fund employee retiree health benefits for the next 75 years. But its depleted cash reserve and new leadership have some worried. President Nixon transformed the postal service from a department of the executive branch into a public corporation in a move that provoked a powerful national strike by postal workers. Ultimately, much of it comes down to a scheme that was a subsidy for the Department of Defense—responsible, by the way, for 18% of all on-budget spending in the 2019 fiscal year. This year, major Trump donor and former Wall Street executive, Louis De Joy was installed as the new Postmaster General, and has continued this decades-long sabotage by announcing the end of overtime and delays in shipping. It was 44% of the 2020 federal discretionary budget. The facts in this publication may be reproduced for the purpose of stating the fact itself, and in a business, informational, academic context and the like, and in the body of text discussing factual subject matter relevant to the fact being presented. If you’re ever dealt with business finance, this is ludicrous. WASHINGTON – The U.S. Post Office. The memes resurfaced in April 2020 as a bill in the House of Representatives proposed to forgive the agency’s debt as part of a stimulus package aimed at mitigating the economic fallout associated with the COVID-19 pandemic.. The first memo, titled “Pivoting to the Future,” declared, “Right now, we are at a critical juncture in our organization and must make immediate, lasting, and impactful changes in our operations and in our culture. The facts in this publication may be reproduced for the purpose of stating the fact itself, and in a business, informational, academic context and the like, and in the body of text discussing factual subject matter relevant to the fact being presented. Postal Facts 2020 provides the public with information about the Postal Service. The U.S. While pre-funding other retiree benefits is normal for both private and … In the 1980s, the postal service was cut off from federal funding, and in 2006 its was obligated to fully fund retirement obligations and benefits up front, beginning its budget crisis. The federal government was in debt to the USPS. The House will cut short its August recess to address United States Postal Service. The Postal Service has racked up $160.9 billion in debt from what’s owed prepaying retiree benefits. Welcome to USPS.com. That means all pension obligations including those from when the person was in the military and not a postal worker. "It needs debt forgiveness, not debt extension. (Photo by Spencer Platt/Getty Images). It’s only that low if you include Social Security and Medicare, which are mandatory. USPS Debt and Stamps published May 22, 2020 by Dave Granlund politicalcartoons.com This was outlined clearly by President Donald Trump’s 2018 plan calling for the privatization of USPS either through the launch of an Initial Public Offering on the stock market, or sale to an existing company. Then there’s one additional insult. Opinions expressed by Forbes Contributors are their own. The Postal Service needs billions, the agency told Congress, and Democrats want to provide a bailout. In 2011, President Barack Obama announced the closure of 3,700 post offices. The Postal Service's finances have long been in sorry shape, in part because of a requirement that the agency pre-fund the future retirement benefits of its employees. Claim: The U.S. economic downturn due to the COVID-19 coronavirus pandemic in early 2020 was forcing the United States Postal Service to close. (AP Photo) The United States Postal Service (USPS) lost $5.5 billion last year. As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism. The United States Postal Service will play a critical role in the 2020 election. The Postal Service, meanwhile, continues to gather debt. The USPS has lost $78 billion since 2007, … The United States Postal Service (USPS), the nation’s national mail carrier service, is under increased scrutiny from politicians who are warning that the agency is not prepared to handle the tens of millions of mail-in ballots which are expected to be sent for the November election. Autoworkers in the US have taken the first step in fighting back against austerity and unsafe working conditions during the pandemic through the formation of rank and file committees, independent of the corporatist unions. These five charts depict the immensity of USPS’s financial challenges. The facts in this publication may be reproduced for the purpose of stating the fact itself, and in a business, informational, academic context and the like, and in the body of text discussing factual subject matter relevant to the fact being presented. ... Another $14 billion is needed to pay off long-term debt … And That Was Before COVID-19 Hit. While there are many factors that led to the USPS’ current state of debt, there are two primary reasons why that debt has now balloomed. How is it that the USPS is earning millions of dollars while also facing one of the greatest financial crises in its history? To understand the postal system’s dire financial straits takes some history. Publicly Released: Mar 10, 2020. This requirement has deprived the Postal Service of the opportunity to invest in capital projects and research and development. Postal Service reported total revenue of $19.4 billion for the first quarter of fiscal 2020 (October 1, 2019 - December 31, 2019), a decrease of $363 million, or 1.8 percent, compared to the same quarter last year. Use our quick tools to find locations, calculate prices, look … This is a massive source of profit that the financial oligarchy is attempting to take over completely. Postal Facts 2020 provides the public with information about the Postal Service. The House Democrats' proposal would have granted the Postal Service $25 billion and forgiven $11 billion in debt. The politicians supported through these funds have gone on to launch vicious attacks on USPS workers. Postal Facts 2020 provides the public with information about the Postal Service. Given that the postal service had been a major employer of veterans, that effectively means transferring a significant financial burden from the Department of Defense to the USPS, according to Rubio. Mail Volume […] Post Office. COVID-19 and the economic devastation it sparked has further accelerated the crisis of USPS, with former CEO Megan J. Brennan telling Congress in late May that without support it would run out of cash to pay its over 600,000 employees by September. November: USPS Reports Significant Mail Volume Decline for the Year. on August 05, 2020 in New York City. Maloney and Connolly noted the House's $2.5 trillion coronavirus relief package would send $25 billion to the Postal Service in emergency funding … The House Democrats' proposal would have granted the Postal Service $25 billion and forgiven $11 billion in debt. Just one example of Amazon’s growth has been the acquisition of 2,300 trucks to expand its delivery network. The dues extracted from each worker go toward funding the bloated salaries of leading union bureaucrats and to the Democratic Party, through funding PACS and direct donations. Postal management has requested $75 billion in financial relief from Congress and additional debt forgiveness, but the need for immediate assistance remains in question. Kevin R. Kosar is the vice president of research partnerships at the R Street Institute. Postal Service 'Unsustainable,' Says GAO. New Debt Collection Notice Policy Effective March 29, 2020, the Postal Service™ will revise the following books to reflect changes in the method for notifying employees who have an employee receivable: n Employee and Labor Relations Manual (ELM), parts 450 and 460. n Handbook F-101, Field Accounting Procedures, Chapter 15. What you need to know about US Postal Service's funding crisis, and how it could impact your vote in the November election Grace Panetta 2020-08-14T22:09:13Z USPS Unfunded Liabilities and Debt as a Percentage of USPS Revenue, Fiscal Years 2007 through 2018. USPS Debt and Stamps published May 22, 2020 by Dave Granlund politicalcartoons.com If approved by the Senate, the legislation would remove $5 billion a year in debts that the USPS pays for the expected costs of health benefits for future postal retirees. Publications & References Check out our various publications and manuals to learn more about what the Postal Service can do for you. A law passed at the end of 2006, combined with the impact of the coronavirus pandemic, has led to turbulent times for the US Postal Service. It was a way to offload big expenses from federal responsibility to the new agency. All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. Link Copied. The U.S. Post Office owes $100 Billion in benefits to its workers/retirees but doesn’t have the money. In 2006, a Republican-dominated Congress passed a bill, signed by George W. Bush, that required the USPS to pre-fund, over a ten-year period, pensions for 75 years in advance. International Committee of the Fourth International. This sounds like some screwy conspiracy theory. Chart 1. It’s no surprise, then, that Congress has started looking for ways to remedy this.