Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/16/2012 (1 year ago)

Catholic Online (www.catholic.org)

'We are walking a financial tightrope,' Postmaster General Patrick Donahoe says

What with the competition from email and other electronic means of communication, the United States Postal Service has been steadily losing money over the past several years. Now, it's even worse than what was previously thought: The U.S.P.S. said its net loss last year widened to $15.9 billion, more than the $15 billion as had projected. Adding to the woes is the fact that mail volume continued to drop, falling five percent.

The service, whose fiscal year ends Sept. 30, lost $5.1 billion a year earlier. The U.S.P.S. announced the 2012 net loss at a meeting at its Washington headquarters.

The service, whose fiscal year ends Sept. 30, lost $5.1 billion a year earlier. The U.S.P.S. announced the 2012 net loss at a meeting at its Washington headquarters.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

11/16/2012 (1 year ago)

Published in Business & Economics

Keywords: United States Postal Service, mail delivery, budget, eBay, Bank of America


LOS ANGELES, CA (Catholic Online) - unless Congress acts, the service will run out of cash on Oct. 15, 2013. According to Chief Financial Officer Joe Corbett, this will occur after the U.S.P.S. makes a required workers' compensation payment to the U.S. Labor Department, before revenue typically jumps with holiday-season mailing.

The service, whose fiscal year ends Sept. 30, lost $5.1 billion a year earlier. The U.S.P.S. announced the 2012 net loss at a meeting at its Washington headquarters.

"We are walking a financial tightrope," Postmaster General Patrick Donahoe says. "Will we ever stop delivering the mail? It will never happen. We are simply too important to the economy and the flow of commerce."

The U.S.P.S. uses about $250 million daily to operate and will have less than four days of cash on hand by the end of the fiscal year, Corbett says.

In reaction, the U.S.P.S. has proposed to Congress to enact legislation before it adjourns this year.  The plan calls for spreading future retirees' health-benefit payments over more years, stop Saturday mail delivery, and more easily close post offices and processing plants.

"The Postal Service is facing a fiscal cliff of its own and any unanticipated drop in mail volumes could send the agency over the edge," Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service says. The coalition includes Bank of America Corp. and Internet auction site eBay Inc.

"If Congress fails to act, there could be postal slowdowns or shutdowns that would have catastrophic consequences for the 8 million private sector workers whose jobs depend on the mail," Sackler adds.

Without legislative change, the service expects its losses to continue in 2013, with a forecast loss of $7.6 billion for the year that started Oct. 1, Corbett said.

"There is no margin of error," given the low level of cash, Sackler says.

To assist with budget goals, the U.S.P.S. is trying to cut costs by giving retirement eligible workers a financial incentive to retire. Those employees have a Dec. 3 deadline to accept the offer, with $200 million budgeted for the incentive costs in fiscal 2013.

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for August 2014
Refugees:
That refugees, forced by violence to abandon their homes, may find a generous welcome and the protection of their rights.
Oceania: That Christians in Oceania may joyfully announce the faith to all the people of that region.



Comments


More Business & Economics

Are you ready? Economic analysts predict bear market by end of 2014 Watch

Image of Economic analysts are predicting a significant drop in the market, which may be as high as 60%.

By Catholic Online (NEWS CONSORTIUM)

Two financial experts announced on August 27 that markets may face a fall of up to 60% by the end of 2014. LOS ANGELES, CA (Catholic Online) - David Tice, the president of Tice Capital and founder of the Prudent Bear Fund, reported that a jolt to international ... continue reading


Oh really Obama? President claims economic success while population dependent on food stamps hit all time high Watch

Image of The number of Americans on food stamps has not decreased since 2011, despite claims from President Obama that the U.S. economy has recovered under his policies.

By Catholic Online (NEWS CONSORTIUM)

Democrats are facing a tough midterm election, and with less than three months to go the party is scrambling to prop up the image of the U.S. economy in the minds of disgruntled voters. LOS ANGELES, CA (Catholic Online) - Yet one of the quickest shorthand ... continue reading


Here comes a boom! $7 trillion in untapped funds to flood global market Watch

Image of A report suggests that corporations and equity firms hold nearly $7 trillion in cash reserves that could bolster the world's economy.

By Catholic Online (NEWS CONSORTIUM)

A new boost to the global economic recovery may happen soon, as corporate giants and private equity firms prepare to tap into cash reserves of $7 trillion, stored since the current financial crisis began back in 2008. LOS ANGELES, CA (Catholic Online) - Investors ... continue reading


OBAMA PARTIES AS ROME BURNS: U.S. wages down by 23 percent - while president takes a vacation Watch

Image of The timing of Obama's swank vacation has even the president's supporters worried.

By Catholic Online (NEWS CONSORTIUM)

Lots of negative news to go around - Ebola seems to be spreading worldwide, Islamic State is increasing its stranglehold on Iraq, a much beloved comedian and screen actor is found dead at home, an apparent suicide - U.S. President Barack Obama is in Martha's ... continue reading


Religious orders NEED to understand economics Watch

Image of A letter from two high-ranking Catholic officials requests that religious orders gain a better understanding of finance and economics.

By Catholic Online (NEWS CONSORTIUM)

In a letter addressed to members of religious communities, Vatican officials requested that these groups should not be ignorant of economic realities connected to community life and a mission of serving the world in the name of the Church. LOS ANGELES, CA ... continue reading


THANKS, BARACK! Federal debt up $7 TRILLION under your watch. Watch

Image of By the close of business on July 31, 2014, it had risen to $17,687,136,723,410.59, up $7,060,259,674,497.51 since Obama first inauguration day.

By Catholic Online (NEWS CONSORTIUM)

Thanks, Barack! The total federal debt of the U.S. government has increased more than $7 trillion during the slightly more than five and a half years Barack Obama has been president. That's more than the debt increased under all U.S. presidents from George ... continue reading


Live Catholic - Shop Catholic - Guess who now accepts checks?

Image of Catholic Shopping .com now accepts checks via Dwolla!

By Catholic Online (NEWS CONSORTIUM)

Guess who now accepts checks? Catholic Shopping .com does! This new option now makes it easier for you to control how you pay for the things you like. LOS ANGELES, CA (Catholic Online) - Catholic Shopping .com is now accepting checks via the online processor, Dwolla. ... continue reading


Unemployment in the U.S. - never went away! Many still without work Watch

Image of The number of Americans not in the labor force dropped only slightly in July, down 119,000 from the 92,120,000 Americans not in the labor force in June.

By Catholic Online (NEWS CONSORTIUM)

It may have fallen off the radar of many news outlets - but joblessness is still a BIG problem here in the United States. Since President Obama took office in January 2009, 11.4 million Americans 16 years and older have left the workforce, according to data ... continue reading


INDEBTEDNESS: One in three U.S. adults have 'debt in collections' Watch

Image of One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.

By Catholic Online (NEWS CONSORTIUM)

Some call it the American way, and it's become a most uncomfortable fact of life for many Americans. Personal debt is at an all-time high, and at least one in three Americans, 77 million people, have had their debt referred to collection agencies as a result. ... continue reading


LUMP OF COAL - LITERALLY! Coal companies pushed to brink of insolvency by Obama policies Watch

Image of The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of insolvency, with many companies going out of business.

By Catholic Online (NEWS CONSORTIUM)

Dealing with cheap natural gas and tighter regulation, the U.S. coal industry has fallen on hard times. The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Jeremiah 1:17-19
17 'As for you, prepare yourself for action. Stand up ... Read More

Psalm, Psalms 71:1-2, 3-4, 5-6, 15, 17
1 In you, Yahweh, I take refuge, I shall never be put ... Read More

Gospel, Mark 6:17-29
17 Now it was this same Herod who had sent to have ... Read More

Saint of the Day

Saint of the Day for August 29th, 2014 Image

St. Sabina
August 29: St. Sabina's feast day is August 29th. We know St. Sabina only ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter