USPS Year to Date Loss: $1.7 billion + PAEA = $7 billion

The US Postal Service year to date financial loss now stands at just under $7 billion, with the vast majority of it due to the Congressionally mandated prefunding of potential future postal retiree’s health benefits.

The USPS continues to show the prefunding as an expense, despite the fact that the PMG has already made clear that he has no intention of actually making the payment.

The damage inflicted by the prefunding comes on top of sharp drops in mail volume. First class mail in July was down 9% from the same period last year (SPLY), while standard mail, which had been on the rise, was down almost 5% from last year. As a result, overall USPS revenue was also down by 5% from SPLY.

The USPS did a good job matching employee work hours to the decline in mail volume- both declined by about 6.6% from SPLY- but employee compensation, including wages, benefits, workers comp, etc., declined by just 3.8%, falling short of the decline in revenue.

USPS Preliminary Financial Information. Unaudited

  • soontogo

    Spin the numbers anyway they like. My office has been steady, typical summer volume and everytime something good is seen in the economy the volume at the back door is up.

  • brian

    Unfortunately your office is obviously not typical of what’s going on in the rest of the country.

  • mike

    Can anyone tell us what the post office would do with the so called prefunding money if they did not have to pay it. My guess? is waste it like they always have with there money. Would someone be watching them to make sure they are spending the money wisely?

  • Isaac Cox

    My office has also noticed higher volume this summer over the previous few. Of course we are far below volumes from five years ago but it has been much improved compared to what we were expecting.

  • brian

    mike- the prefunding money is “so called” because that’s exactly what it is. What would the USPS do with it? Obviously, the first $15 billion goes to pay off the debt the USPS incurred to DO the prefunding the last few years. Equally obvious is what the USPS would “do with the money” after paying off the debt- pay things like your salary. It’s not as if the USPS would suddenly have a huge windfall and no idea what to do with it- it would pay its bills. There’s no big mystery here.

  • JY

    Only 6 years ago (2006), USPS had NO debt.

  • nolley

    Mike, I have said the same thing for quite some time. It doesn’t matter if the PO makes money or not because they
    would just waste whatever surplus they had. We would all
    have GPS devices following us around, more management
    positions created, etc., if the suits had the money. Just
    hope a fair contract is in the future. I would even be happy
    to go without any pay increases, or even a small giveback
    if we could convince management to lighten up on our
    mail routes. Give us a little breathing room so we can do
    our jobs properly instead of feeling like we are running a
    marathon every day, I’d enjoy my job again.

  • brian

    Surplus? What surplus? What we’re talking about is letting the USPS use the money it gets from customers to pay people like you, instead of letting Congress skim $5 billion a year off the top to lower the federal deficit. You guys need to wake up to the fact that the prefunding tax is real, and is endangering your jobs. Donahoe made that pretty clear- he doesn’t care about ending pre-funding any more- he now realizes that he can use the massive losses it created to force layoffs and pay and benefit cuts.
    If Donahoe gets his way, you’ll see more than “small givebacks”- and management isn’t going to be interested in your little request for “breathing room”!

  • JT

    agree with BRIAN, on all accounts.

  • Anthony reyes

    Just start trimming the fat from the top(management). The offices can pretty much run themselves with very little management. In fact, most supervisors have little or nothing to do once the carriers leave for the street. I suggest splitting their schedules, come in for 2 hrs while carriers are getting mail ready for street, then take their butts home for 4-5 hrs, only to come back 1hr before carriers arrive back from street. Hmm…part-time supervisors sound very good to me. Just think of the cost savings there…204-b’s galore.