In an interview with The Daily Ticker, Donahoe says “it’s doable” for the organization to close its $20 billion revenue gap, a feat he hopes to accomplish by 2017.
“We do not want a [taxpayer] bailout,” he maintains. “What we’re proposing is very workable.”
Donahoe believes there are two key changes that must be implemented for his organization to survive: permanently ending Saturday mail delivery and reforming the organization’s retirement structure. According to Donahoe, the organization’s Congressional mandate to pre-fund future retirees’ health benefit costs sets USPS back $8 billion and he has been aggressively trying to take control of the organization’s healthcare system.
As for eliminating Saturday delivery, Donahoe says the proposal “is still on the table.” There are bills in the Senate and House that would allow the postal service to move to a 5-day delivery system but the plan has already been dismissed by members of both parties.
PMG Video: Post Office Does Not Need a Taxpayer Bailout – Yahoo! Finance
dear john from long island. the government owed the postal service 27 billion back in 2003, a court finally decided that outcome. the pre-pAY IS A RESULT FROM THAT DECISION. issa calls that a tax payer bailout. its usps money, pay it up.
Listen people. 2 payments of 5.5 billion adds up to 11 Billion dollars. Not 16 Billion. Simple math..Also those payments will never be gone they will be lowered but we will still have to pay into the account, the formula will be changed…So go do some research and you will see that after all is done with the payments the USPS is in the red for about 1 to 2 billion dollars. Things need to change. Stop reading the union Bull shit and Open YOur Eyes. Look at the craft workers you guys work with. If you started a business how many of them would you hire…Not many…And you definetly would want them to form a union. So instead of blaming others, just do your part. Like Obama should do. Stop blaming everyone else when it is his policies that are effecting this country.
Jimmy…..They skipped making the payments but they did not skip calling them an expense. In fact the payment they skipped twice and congress delayed by a year they called an expense in both years that they skipped it.
Those 2 skipped payments account for over $16 billion of the USPS’s reported losses in Fiscal Years 2011 and 2012.
There are 2 skip pre-fund payments already, but usps still report loss money without paying the pre fund, guys, don’t be fooled by Donuthole.
With out the Congressional mandate to pre-fund retiree health care benefits the Postal Service would have shown a profit of over $300 million for the year-to-date — and $700 million for the third quarter.
http://www.savethepostoffice.com/when-good-news-bad-news-postal-service-spins-its-Q3-financial-report
Wouldn’t need a bailout if the USPS overpaid, under worked, bloated mgmt ranks would be drastically trimmed too.
Instead, they’ve actually grown by almost 8% during this, cough, financial crisis.