The Postal Service Gets A(nother) Handout From Washington
pic credit: Tom Keating via TMCnet
Our favorite quasi-private, government-handout-addicted mess the Postal Service may see a little fiscal relief in the year ahead thanks to some creative reshuffling on Obama's part. It won't fix the USPS, it merely delays their day of reckoning (a theme with our dear government these days as we know).
President Obama's proposed 2012 budget doesn't say anything about raising stamp prices, ending Saturday mail deliveries or closing post offices, but it tries to remedy the U.S. Postal Service's perilous financial condition by recommending about $11 billion in relief.
In the Obama administration's first substantive attempt to address the Postal Service's fiscal woes, the budget would allow the agency to pay $4 billion less toward future retiree health benefits than otherwise required. The mail agency would have to pay about $1.5 billion of those costs in fiscal 2012 and make up the difference in later years.
How is the USPS supposed to make up the difference if they can't even pay the bills as is?
I say let them go fully private and worry about their own financial issues or get real about the situation and stop pretending like they are an independent agency. I'd love to see the Postal Service increase stamps to 60 cents a piece and see how that works out.
Here's what I'd still like to know... how is it the USPS has almost maxed out their $15 billion Treasury credit limit but it still managed to send over $50 billion more than it needed to to cover these pension liabilities? And where's that money?