The USPS loses money, but cash flow has been more stable. where her work appeared on outlets such as Drudge Report and Fox News. I’d assumed that this was pretty much never going to happen again, but against all odds the United States Postal Service has recorded a profit. The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. This extraordinary mandate created a financial “crisis” that has been used to justify harmful service cuts and even calls for postal privatization. Instead, revenue for the Postal Service has risen more than $500 million in the past nine months, driven by a 20% jump, or $3.4 billion, in sales from shipping packages that has … While Gallup found in 2014 that 72 percent of their respondents said USPS is doing a good job and only 8 percent regard its performance as poor, the report finds that there have been issues with service. Postal Service reported operating revenue of $70.6 billion for fiscal year 2018 (October 1, 2017 - September 30, 2018), an increase of $1.0 billion compared to the prior year. Excessive Losses. The major one has nothing to do with the mail and everything to do with congressional politics. "USPS is in desperate need of reform," said Curtis Kalin, a spokesman for the watchdog group Citizens Against Government Waste. The United States Postal Service first began moving the mail on July 26, 1775, when the Second Continental Congress named Benjamin Franklin as the nation's first Postmaster General. The net loss of nearly $2.3 billion comes on the heels of an already bleak fiscal year that saw a combined loss of $3.6 billion—$2.1 billion in quarter two and $1.5 billion in quarter one. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. Postal Service . The USPS isn’t without competition so how did they climb back into the black? WASHINGTON - The U.S. And the USPS can’t increase costs to fix its problem because the government has limited how it can increase price to the rate of inflation, currently 0.9%. For the sixth consecutive quarter, the U.S Postal Service turned an operational profit when accounting for its controllable costs. Postal service, which operates on sales of stamps, last had profit in 2006 and took last taxpayer aid in 1982 Jim Hightower, the populist commentator and … Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports. Is it really a good thing or not? 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. This calls for some cool headed thinking, a rational plan and some consensus in Congress on a path toward a solution. However, the last year the Postal Service recorded any profit was 2006, and its cumulative losses since then totaled $83.1 billion as of March 31. All Rights Reserved. A new analysis explains just how much the USPS benefits from the subsidies it receives from the federal government. They’ll do anything to cancel conservatives, “the construction, approximately 4.5 kms within Indian territory of the de facto border, will be of huge concern to India.”, “We are trying to separate the aspirational from the intentional.”. This brief spasm of profitability is based largely on a somewhat stronger economy, with more people buying and shipping things. The days when the post was the primary conveyor of intellectual goods (i.e. How can an organization this large function with a no profit requirement? The U.S. Jazz ShawPosted at 4:41 pm on February 10, 2016, This is something akin to seeing a Pegasus in your horse stable one morning. "Although the Postal Service has not yet received an explicit taxpayer bailout, it has failed to meet its legal obligations for several years in a row," the report states. Profits grew $1.1 billion over the same period last year, when the Postal Service lost $754 million. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states.It is one of the few government agencies explicitly authorized by the United States Constitution. Recommended to you based on your activity and what's popular • Feedback Is the USPS allowed to generate a profit? It’s also true that the Postal Service faces challenges; albeit not as often pictured. Does that sound likely to happen in an election year? Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. Ali Meyer is a staff writer with the Washington Free Beacon covering In terms of mail service by private citizens, that’s pretty much a given I suppose. The U.S. “letters”) is pretty much over and we shouldn’t expect to see it come back unless an EMP knocks out the grid for a few years. Claim: The United States Postal Service (USPS) is losing money due to a 2006 law mandating it fund its pensions 75 years in advance. Postal Service reported operating revenue of $71.1 billion for fiscal year 2019 (October 1, 2018 - September 30, 2019), an increase of $514 million compared to the prior year. The U.S. Postal Facts 2020 provides the public with information about the Postal Service. It’s our old friend, mandatory, baked in retirement plans and benefits which swamp any profits which the business might take in even if it were run in the most efficient manner possible. The United States Postal Service on Friday reported total revenue of just over $17 billion for the third quarter of fiscal year 2019. The American postal service is on the verge of default. Her Twitter handle is @DJAliMeyer, and her email Bookmark the permalink. The task at hand is figuring out not just how to make the USPS financially viable, but also relevant in our wired world. In 2006, a lame-duck Congress mandated that the Postal Service pre-fund retiree health benefits. The U.S. The report says that if the enterprise had more operational flexibility, its losses would not be as large. "While the Service does have greater operational discretion than many federal agencies, it has much less than a typical private-sector business because Congress often micromanages its actions," the report says. If the USPS was a private sector company, that would translate to a pretty healthy profit. THEY LOSE A FORTUNE, and this will be changed.\" Total operating expenses came in at $19.3 billion. If the costs of this retiree health care mandate were removed from the USPS financial statements, the Post Office would have reported operating profits in each of the last six years. "There is no turnaround in sight," states the report. Postal Service letter carrier Michael McDonald gathers mail to load into his truck before making his delivery run in Atlanta on Feb. 7, 2013. What happened to its profits prior to 2006? Bulk mailings and junk mail aren’t all that profitable. The agency has 300,000 fewer employees than it did a few decades ago. Congress could probably step in and ease some of that burden but then they’d be taking on the unions along with a few other headwinds. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. Research Institute. The Postal Service also owes $11 billion to the Treasury and more than $59 billion in required but unpaid contributions to its employee pension and retiree-health funds. Must See: Father Absolutely Nukes Loudon County School Board and Teachers in Viral Video, Ten Reasons a Post-Presidency Impeachment of Barack Obama Should Happen, Firearms Company Finds New Home After Passage Of Gun & Ammo Tax, Gun Control Group Has a Racist Take on Black and Brown Gun Owners, CCPA - Do Not Sell My Personal Information, Don’t look now, but the post office just turned a profit. No other agency or company in the country has to pre-fund for even one year; the Postal Service must pre-fund 75 years’ worth of these benefits in advance. address is meyer@freebeacon.com. They Help To Track Down Criminals; Working for the postal service means more than just delivering the mail and fighting crazed dogs every day. Newsweek noted back in November that they were starting to get their head above water but more work remained. Post office makes a profit Congress won’t let it keep Editor, Times-Dispatch: Robin Beres’ Commentary column eloquently discussed the value of the U.S. In terms of USPS innovations, that’s them at their most efficient, by far! By the end of the decade, the semi-independent government agency 's losses had reached a record $8.5 billion, forcing the Postal Service to consider seeking an increase in its $15 billion debt ceiling or face insolvency. Seven months into the current fiscal year, the US Postal Service's revenue exceeds its expenses by $1.353 billion. Early History of the U.S. (And even then, stamps will probably be hard to come by.) Postal Service but incompletely depicted its financial status. The Washington Free Beacon's morning email lays out everything you need to know about the world of politics, foreign affairs, and, California Blocks Release of Spending Records, Buttigieg: Warren’s Medicare for All Math Is ‘Controversial’, Warren Claims Non-Billionaires Won’t Pay Higher Taxes Under Health Care Plan, MSNBC: Warren’s Medicare Plan Is ‘Ultimate Clapback’, Ernst Pushes Bill to Prevent Fed Splurge on Lobsters, Candies, Video Games, Nearly $267,000 of Minnesota Taxpayer Money Given to ‘Tonight Show’, Watchdog Exposes $15.3 Billion in Congressional Waste, Rep. Cox Closes DC Office for ‘All-Staff’ Retreat, Lincoln Project Still Raising Money to ‘Defeat Kelly Loeffler and David Perdue’ in Georgia Senate Runoff, VIDEO: Joe Biden Makes Not Wearing a Mask Acceptable Again, Bernie Sanders’s Mitten Maker Blames High Taxes for Ruining Her Small Business, United by Unity: President Biden Vows to Make Politics Boring Again, Biden’s Asia Policy Czar Helped Found Group ‘Heavily Influenced by the CCP’. "The odds that a bailout will eventually become unavoidable increase as the sea of red ink continues rising.". (Government Executive). The Government Accountability Office (GAO) estimates that the Postal Service’s unfunded liabilities grew 62 percent from 2007 to 2013. Copyright HotAir.com/Salem Media. That is because as mentioned above, the USPS has some unusual expenses, imposed by … Without this unique and unfair burden, the narrative would be as follows: Here’s a government entity that, with no taxpayer money, and faced with a still soft economy plus the growing reach of the Internet, once again earned a billion dollar-plus operating profit. to the Free Beacon, she was a multimedia reporter with CNSNews.com DoJ: Sedition charges in Capitol riot coming “very soon”, Flashback: When Joe Biden said only dictators legislate via executive orders, Goya Foods bans CEO from media appearances after questioning election results, The rewriting of history continues in support of Tom Cotton smear, Judge blocks Biden’s freeze on deportations, Morning Consult: Half of all Republicans want Trump playing a “major role” in the GOP, Democrats move to ban Trump supporters from federal jobs or joining the military, McConnell warns Dems: I will go scorched earth on your asses if you nuke the filibuster. She also interned with the Heritage Foundation and Pacific Post office workers have been useful to the police by helping to find criminals, investigating crimes, and gathering evidence. And no.. this is not an article from The Onion. Claim: \"Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. The Postal Service is operating at a profit U.S. All it would take is another even modest downturn in the economy and the USPS would be right back in the red. However, living up to its government-sponsored reputation, the opposite desire is taking hold at the agency.". This entry was posted in Issues and tagged Government Spending. But packages can’t be sent in an email – yet – so that’s where the money is in this business. House Dems wonder: Would any of Trump’s former White House aides be willing to testify against him at the trial? USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. The pandemic offered the president his first opportunity to truly threaten the agency he calls Amazon’s “delivery boy.” "The Postal Service will almost certainly register another multibillion dollar loss in 2015; for the first two quarters of 2015, it suffered a net loss of $2.8 billion.". The USPS is a quasi-government business that has many odd restrictions. The change reportedly will save the USPS $2 billion annually. In addition, the report finds that USPS has failed to make legally required payments to the U.S. Treasury and will default on its statutory obligations, which include the Postal Service Retiree Health Benefit Fund. In accepting the position, Franklin dedicated his efforts to fulfilling George Washington's vision. In fact, the USPS annual report detailed not only challenges but also several highly positive trends. 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