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US Post Office Lost $3.8 Billion Last Year

From an unfazed Associated Press:

Post office was $3.8 billion in the red last year


WASHINGTON — The Postal Service reported a loss of $3.8 billion last year, despite a reduction of 40,000 full-time positions and other cost-cutting measures.

The loss was $1 billion more than the year before despite job cuts and other efforts designed to save billions of dollars, postal officials said Monday

For the fiscal year that ended Sept. 30 the agency had income of $68.1 billion, $6.8 billion less than in 2008. Expenditures were down $5.9 billion to $71.8 billion.

Postmaster General John Potter is seeking permission from Congress to reduce mail delivery from six days a week to five, a move that could save the agency $3.5 billion annually

In addition the agency is consolidating mail facilities, looking to close some offices and looking for new sources of income.

The post office is required to make an annual contribution of about $5 billion to pay in advance for medical benefits for future retirees. Congress reduced that by $4 billion for 2009, but that change was for one year only.

The agency’s independent auditor, Ernst & Young, questioned whether the post office would have enough money to make the next payment on Sept. 30, 2010, when $5.5 billion will be due.

For the current fiscal year, the post office estimated it will have a further decline in income of $2.2 billion and a net loss of $7.8 billion even with expected cost reductions of more than $3.5 billion. It expects a reduction in mail volume of another 11 billion pieces

Mind you, Mr. Obama has regularly compared the Post Office to government run healthcare.

He seems to have stumbled into the truth.

For who doesn’t believe that we won’t have to pay more for less service under Obama-care, just like we have to do with our wonderfully efficient Post Office?

This article was posted by Steve on Tuesday, November 17th, 2009. Comments are currently closed.

7 Responses to “US Post Office Lost $3.8 Billion Last Year”

  1. BannedbytheTaliban says:

    Has anybody done a per person cost analysis on how much it costs to provide private health coverage (i.e. insurance) vs. public health coverage (i.e. medicare)? I’m betting the private sector insurance is probably about 50% cheaper, especially when you have to factor in the cost of supplement insurance for those on medicare.

  2. proreason says:

    3.8 billion with gubamint accounting.

    And aside from the government’s fantasy accounting, the beaurocrats hide costs all over the place. “off-budget” is a way of life for Washington.

    If an Inspector General or somebody like that makes a pest of himself, he gets fired straight up.

    What if the truth were known?

    A 38 billion loss is more likely.

  3. Chuckk says:

    Only 3.8 billion? GM needs to take business lessons from the P.O.

  4. canary says:

    The postal service paid for an independent auditor, Ernst & Young?

  5. sheehanjihad says:

    Is this the same Government accounting that is keeping tabs on the “jobs created or saved” scam the administration is currently running? It’s probably the post offices in those “new” congressional districts that are losing so much money…….health care will be a breeze! Everything will be “free!”….

    all we pay for is processing and handling. RIP Billy Mays

  6. BillK says:

    I honestly wonder what it would cost if the Postal Service was contracted out.

    Then again I doubt any private company would want the job; I can’t imagine how much money rural postal routes must hemorrhage, even with the recent scourge that is cluster mailboxes.

  7. MinnesotaRush says:

    So .. where would UPS and FedEx be if they were losing billions a year?

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