Bernie Sanders: Postal Service Revenue Rises as Service Cuts Loom

BURLINGTON, Vt., Nov. 14 – Calling on the Postal Service to avert damaging service cuts and job losses, U.S. Sen. Bernie Sanders (I-Vt.) pointed to a new report today that revenue for the mail delivery service rose by $569 million during the fiscal year that just ended.

It was the second year in a row that profits rose, mainly because of increases in package deliveries to online shoppers.

Despite almost $1 billion in revenue growth over the past two years, the Postal Service is forging ahead with plans to shut down as many as 82 mail processing plants beginning in January. The closings would put 15,000 jobs in jeopardy.

“Despite increased revenues and some very positive trends, Postal Service management seems hell-bent on slowing down mail delivery which is a self-destructive path that could put it into a death spiral,” Sanders said.

The Board of Governors on Friday appointed Megan J. Brennan to be the new postmaster general. A top aide to outgoing Postmaster General Patrick Donahoe, Brennan has pursued some of the same damaging proposals to cut services and eliminate jobs.

“I hope that Ms. Brennan understands that the Postal Service clearly needs to rethink its current approach.  If it is going to be competitive and successful in the modern era, it cannot simply cut, cut and cut more.  It needs to be creative and strengthen services that the American people need.” Sanders said.

While revenue for mail delivery is rising, USPS bookkeepers showed a deficit for the past year because of an onerous and unprecedented Bush-era law that requires it to pre-fund 75 years of future retiree health benefits for a program that already has more than enough reserves set aside. Without the mandate, the Postal Service would have made an operating profit of $823 million over the past two years.

The unnecessary financial burden on the Postal Service would be relieved under legislation Sanders introduced on February 13, 2013. It now has 28 co-sponsors. The Sanders bill also would modernize the Postal Service and let it expand its business operations without the need to slash services or eliminate Saturday mail.

  • fred

    If revenue from package deliveries is rising and letter mail is declining, doesn’t make sense to reduce “mail” processing capacity?

  • guest

    Hmmm, Sanders introduced a bill to relieve the PO of PAEA and has a total of 28 Senators co-sponsors in a democratic senate. This bill was introduced Feb. 13th 2013.

  • James Martin

    The earlier round of cuts had minimal impact overall …..the next round starting Jan will hit larger cities impacting 70% of the country…….

  • jacobmoore6135

    St­art ma­king $300 every day for working online for a few hours each day from your home… Get payed weekly on a regular basis… You’ll need a computer, little free time and internet connection and you are ready to go…

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  • ben franklin

    Actually, our “socialist” post office worked just fine for a couple centuries until you teabaggers came along!

  • fred

    So did the horse and buggy.

  • ben franklin

    So did the military. So did the highway system. Funny how well socialism works!

  • Mark

    Perhaps if congress hadn’t used the post office to fund it’s bush-era wars disguised as concern for future retirees ( the ones yet to be born ) the USPS would be just fine.

  • Teapolicy

    So the postal service is one of the only efficient industries in America and especially government that can’t find even an iota of efficiency gains from cutting labor costs? The changing lanscape of logistics and shipping costs and volume of first class mail are irrelevant to post office operations? Hypotheticals are fun but irrelevant for a business being run in the real world. if that is indeed the case then maybe then it will at least be nice to have a retirement system funded pension system across state local and federal government. At least they won’t end up like Stockton, ca and scores of cities and state systems across the country