Tag: USPS

Both the Presidential Commission on the U.S. Postal Service and GAO’s past work have reported that universal postal service is at risk and that reform is needed to minimize the risk of a significant taxpayer bailout or dramatic postal rate increases. The Postal Service’s financial viability is at risk because its business model–which relies on mail volume growth to cover the costs of its expanding delivery network–is not aligned with 21st century realities. Financial, operational, governance, and human capital challenges threaten the Service’s ability to remain self-supporting while providing affordable, high-quality, and universal postal service. Key trends that demonstrate the need for reform include declining mail volume, particularly for First-Class Mail; changes in the mail mix from high-margin to lower-margin products; increased competition from private delivery companies; and subpar revenue growth.

The U.S. Postal Service is testing a retail window dedicated to small-business customers at 87 post offices nationwide.

The window, called the Business Line, is reserved for use by businesses whose transactions often are more complex than those of other retail customers.

USPS Postmaster General John Potter has warned that a postal rate increase planned for 2006 could be 4 cents or more for first class letters unless restrictions on how the agency operates are eased.

Potter asked a joint House-Senate hearing on the future of the post office to free USD3 billion in postal funds from an escrow account and to remove a USD27 billion obligation for the agency to cover military retirement benefits for its workers who previously served in the armed forces.