Tags: post | office | losing | 25 | million | daily

Postmaster General: Post Office Losing $25 Million Every Day

Monday, 28 Jan 2013 07:58 PM

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
The price of a first-class stamp rose a penny on Sunday, to 46 cents, but the U.S. Postal Service is still operating at a deficit.

“We are currently losing $25 million per day,” Postmaster General Patrick Donahoe said this month, according to NBC News. Last fiscal year, the agency lost nearly $16 billion — and it no longer has a line of credit with the U.S. Treasury Department.

The Postal Service could run out of money “between six months and a year at most,” if Congress does not act, Richard Geddes, associate professor of policy analysis and management at Cornell University, told NBC.

Investigation: China Secretly Stockpiling Gold

The Postal Service said keeping letters moving is its top priority, even if it means defaulting on its retirement benefit funds again.

“Although our liquidity situation remains a serious concern, the Postal Service is continuing to prioritize payments to ensure employees and suppliers are paid on time, preventing any interruption in our operations,” spokesman David Partenheimer, told NBC.

Still, Michael Crew, director of the Center for Research in Regulated Industries, and professor of regulatory economics at Rutgers University, told NBC: “There could be a period when mail is not being delivered.”

The Postal Service delivers mail six days a week to everyone in the nation who has been sent mail, and maintains as many as 32,000 post offices.

The post office wants to eliminate Saturday delivery, which Partenheimer said would save $2.7 billion a year, but it needs congressional approval to do so.

Congress has not granted that authority.

“Essentially, Congress has got to rethink the legislation that establishes the post office,” Crew told NBC.

Investigation: China Secretly Stockpiling Gold

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Bill Clinton to Speak at Miami Rally for Charlie Crist

Saturday, 30 Aug 2014 19:48 PM

Former President Bill Clinton will be the keynote speaker at a rally in Miami Friday for Democrat gubernatorial candidat . . .

Jerry Brown Furious Over Court Decision Banning Teacher Tenure

Saturday, 30 Aug 2014 08:02 AM

California will appeal a controversial court decision that overturned some job protections for public school teachers an . . .

Report: Joan Rivers on Life Support

Saturday, 30 Aug 2014 18:19 PM

Joan Rivers remains unconscious since being rushed to a New York hospital on Thursday morning and is on life support, ac . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved