US Postal Service Announces Third Quarter Results

In August the US Postal Service announced third quarter results for the period ending 6-30-2016. Despite an operating revenue increase of $1.2 billion over the same quarter in 2015, there was a net loss of $1.6 billion.

Shipping and package volumes increased by $645 million or 18.1%. However, delivering a package involves considerable additional processing expense as compared to delivering First Class Mail. Those expenses include labor hours and transportation. According to the USPS’s Form 10-Q submitted to the Postal Regulatory Commission, “For 2015, Shipping and Packages revenues would have needed to increase by 260% in order to make up for the impact of the contribution provided by the volume losses of First-Class Mail for that year . . .”

Preview of Designs for 2017 Stamps

  The US Postal Service has announced a selection of new stamps for 2017.  The subjects of the stamps include John F. Kennedy, Flowers from the Garden, Uncle Sam’s Hat, and Sharks, along with several others.  May-Anne Penner, U.S. Postal Service Stamp Services Executive Director says “Stamps are miniature works of art that tell America’s…

Bi-Partisan Postal Reform Legislation in the House of Representatives

H.R. 5714, Postal Service Reform Act of 2016, was introduced in the House of Representatives on July 11 and referred to the Committee on Oversight and Government Reform, the Committee on Energy and Commerce, and to the House Ways and Means Committee for budget scoring. On July 12 the Oversight Committee issued a report to the full chamber recommending that the bill be considered further.

The USPS in the Obama Administration’s Budget

On February 9, 2016, the President submitted to Congress his Budget for Fiscal Year 2017.

The Appendix under Other Independent Agencies contained the Administration’s approach to resolving financial difficulties at the US Postal Service. The Administration promises to work with the Congress and Postal stakeholders to secure reforms that improve the efficiency of the USPS, update its business model and provide measures for financial relief.

Proposed Postal Reform Bill Addresses Service Standards

In The U. S. House of Representatives on March 1, 2016, Representative Jared Huffman (CA-2) introduced H.R. 4565, also called the “Stop Postal Closures Act of 2016”. The general purpose of this bill is to address and improve declining USPS service standards and reinstate service standards that were in effect on July 1, 2012.

This bill would place a moratorium on closing or consolidating postal processing facilities. The moratorium would not prohibit closing post offices.