USPS aggressive financial plan gets Board of Governors approval
The Postal Service Board of Governors today approved an aggressive 2008 financial plan for the U.S. Postal Service that includes USD 1 billion in cost savings and puts its expense growth lower than inflation.
The Postal Service’s operating, capital and financing plans for the new fiscal year, known as the Integrated Financial Plan (IFP), project expense growth below the assumed increase in the Consumer Price Index (CPI), the most commonly used benchmark for inflation.
Those projections do not assume any price changes for postal products and services over the next fiscal year, which begins Oct. 1. The Board of Governors has not made a decision on future prices but applauded the Postal Regulatory Commission for being well ahead of schedule with its recommendations on the new rate regulations.
The IFP projects revenue of USD 78.2 billion and expenses of USD 78.8 billion in fiscal 2008, for a net loss of USD 600 million. The financial plan is significantly affected by the Postal Accountability and Enhancement Act (the Postal Act of 2006), as are finances in the current fiscal year.
