USPS still in the black year to date- before $4.5 billion in PAEA charges

The US Postal Service, despite being in the midst of a supposed financial “crisis”, is still showing a fiscal year to date profit of $105 million as of January 31. USPS revenue for the first four months of the fiscal year was $23 billion, while actual operating expenses were $22.9 billion.

So in terms of actual cash, the USPS is doing pretty well. Unfortunately, as a result of the 2006 PAEA law, the USPS is required to record $4.5 billion in losses that don’t actually exist. $532 million of that is what’s identified as “non-cash adjustments; the impact of discount and inflation charges and the actuarial revaluation of existing [OWCP] cases”. The rest, just over $4 billion is the infamous “Retiree Health Benefit Trust Fund” charge. The USPS hasn’t actually paid the Treasury that much this year- the full annual payment isn’t due until September 30. But the USPS is required to show a portion of the charge on its books each month. Even at the end of the fiscal year, of course, any transaction would be a strictly paper exercise, with the Treasury loaning the USPS billions of dollars that the USPS would immediately loan back to the Treasury. Welcome to the mysterious world of Congressional accounting!

USPS Preliminary January 2012 Financials.

  • reogurl

    It’s all nothing more than a dog & pony show to destroy labor and privatize the Postal Service. America should be outraged, but that will not likely happen until the cost of doing business increases to a staggering amount and the middle class is wiped out.

  • jo

    How does the csrs pension affect the defecit?

  • Ross-Issa’s GOP Fault

    They are the one’s trying to kill the USPS. Hopefully they are never re-elected!

    Stop the PAEA and we will not have to cut service or raise stamps. How hard is that? Why does the GOP like to give the USPS a black eye?

  • whistleblower

    How does the csrs pension affect the defecit?
    It’s like your bank that holds your home mortgage forces you to pay your 30 year mortgage in 5 years and you borrow from that same bank to pay the inflated bill. Fire postal management and put the bankers in JAIL!

  • CSRS Pension

    It is overpaid by $90 billion, not million. Why does it need more $$$ since 2006? It is stupid Republican’s trying to hurt the middle class. UPS/Fed Ex gives the GOP big $$$ to hurt the USPS.