But Campbell said federal agencies don’t have to make these prepayments. A key provision of the Act is inclusion of … And, serious debt. Postal service can’t deliver long-term, stable jobs, U.S. But its depleted cash reserve and new leadership have some worried. Mail Volume […] Democrats want to ask him about changes to the Postal Service they say could disenfranchise people planning to vote by mail in the November election. Small radio stations in Georgia benefit from big spending on U.S. Senate races. However, the post office is still tightly regulated by Congress. New Debt Collection Notice Policy. This content is currently not available in your region. Donate today — in any amount — to become a Marketplace Investor. Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay. Donate today — in any amount — to become a Marketplace Investor. All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. He said the Postal Service is more than $160 billion in debt… At 4:35 a.m. on December 9, 2006, the 109th Congress adjourned “in a blaze of bickering,” as the Miami Herald headline put it. Since then, losses have run between $2.8 billion and $15.9 billion. Over the past decade, the debt and unfunded liabilities like pensions and health care have outpaced the revenue the Postal Service takes in. This is false; the USPS had a net loss of $8.8 billion in 2019, and its total liabilities exceed $97 billion, according to official disclosures. Postal Service (USPS) ran a deficit of $3.9 billion. The new European data protection law requires us to inform you of the following before you use our website: We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. What's going on at the Post Office? The Postal Service is supposed to be self-funded — not getting any government money. House passes legislation to ease USPS debt burden. To make matters worse, Congress capped post office price increases for letters and circulars at the rate of inflation. 2020-05-29T13:10:00Z The letter F. ... USPS has been around for more than 200 years, ... 13% of the $75 billion it had originally asked for and another $10 billion to add to its debt. How has the pandemic affected USPS? The 2006 law was meant to correct that. “Congress ordered the Postal Service to pay, for 10 years, about $5.5 billion per year into this prepayment fund,” said Jim Campbell, lawyer and consultant on the Postal Service. However, the post office can’t change that model without congressional approval. Feb 7, 2020, 10 AM. “Retiree health care benefits and pensions are two different things. In its 2020 fiscal year report, the USPS stated that mail volume had declined by 13.8 billion pieces, accelerated by the pandemic. The USPS’s last profitable year was 2006. USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue.” As CNN reports, the USPS told Congress it would be out of money by September back in April of 2020. From staring down bankruptcy to fighting mail delays that could’ve shaken the 2020 national election, the USPS has been against difficult circumstances this year all while the 644,000 postal workers ensure the country’s mail is securely delivered in a timely manner. In 2006, the Postal Accountability and Enhancement Act (PAEA) ordered the USPS to pre-fund employee retiree health benefits for the next 75 years. 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's going on at the Post Office? EIN: 41-0953924. Despite the dire warnings, however, the USPS received no additional funding in the $2 trillion coronavirus stimulus and relief package legislation signed by President Trump on March 27, 2020. Public debt already is $24 trillion, so the public is not terribly harmed by assuming this additional debt — especially if it helps stave off the collapse of the USPS. Frank Todisco has been tracking that. USPS Unfunded Liabilities and Debt as a Percentage of USPS Revenue, Fiscal Years 2007 through 2018. “USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue.” The USPS told Congress in April that it would run out of money by September of 2020, as Business Insider reports. (See Figure 1 in report.) Defenders of the changes said they were necessary to help the USPS get out of financial debt. The House is scheduled to come back from its summer recess later this week to vote on Postal Service legislation. Politifact Illinois, No, USPS isn’t operating with a multibillon dollar surplus, Sept. 6 2020 Investopedia, Debt Definition , Sept. 14, 2020 Read About Our Process “The Postal Service needs America's help, and we must answer this call,” said leaders of the Committee on Oversight and Reform. The US Postal Service has received a large amount of attention in 2020. As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism. What can Congress do about funding for the USPS and vote-by-mail efforts? Marketplace Investors kept our work strong in 2020. Mail pieces dropped from 213 billion in 2006 to 155 billion last year, and the number is expected to decline to 130 billion by 2020. Further, USPS has missed $48.2 billion in required payments for postal retiree health and pension benefits as of September 30, 2018. Will millions spent on ads sway voters in Georgia runoffs? We rely on readers like you to uphold a free press. He said the Postal Service is more than $160 billion in debt. Politicians love promising jobs. When most people think of the Postal Service, they think of letters from grandma or junk mail. Last year, the U.S. Article continues below advertisement Here’s why it’s in … Unfortunately, losses are the rule rather than the exception for the agency. All Rights Reserved. Postmaster General Louis DeJoy has agreed to testify on Capitol Hill next week. At the same time, the GAO reported that “the USPS’s debt and unfunded liabilities have become a large and growing burden – increasing from 83 percent of USPS’s revenues in fiscal 2007 to 148 percent of revenues in fiscal year 2013.” In other words, the USPS spent and owed (unfunded) 48 percent more than the total it took in from revenue in 2013. Retirees need it big financial concerns, How to vote by mail in the power of public Service.... 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