USPS 2011 loss now $5.6B, 82% of it due to Congressional mandates, not operations

The US Postal Service yesterday released a rather sparse financial report (a single PowerPoint slide) showing that its fiscal year 2011 loss now stands at $5.6 billion with three months to go.

Postal operations account for $1 billion of the total loss. The remaining $4.6 billion is due to trust fund and accounting mandates imposed by the 2006 PAEA law. Since 2006 Congress has demanded $5.5 billion from the USPS annually for a so-called trust fund to finance health benefits for future postal retirees. As mail volume declines, the Congressional mandate forces the USPS to borrow money from the Treasury that it then loans back to the Treasury. (More creative accounting from the folks who brought you the “debt ceiling”!)

  • kevin

    standard operating procedure
    dont worry we will blame the carriers and make them do more with less time thos lazy sob’s

  • my 2 cents

    I have always contented that “accounting’ IS the act of shuffling figures around until you get the desired outcome – so what is new here?

  • my 2 cents

    the intended word in my posting was contended!

  • Bigwheel

    Results of republican policy.

  • Spanky McFly

    There is so much misinfromation floating around out there about the Postal Service, Fidex and Brown must be lauging all the way to the bank.