Senator Carper says USPS finances will get worse in coming months

Senator Carper says USPS finances will get worse in coming months2/9/16 WASHINGTON – Today, Senator Tom Carper (D-Del.) ranking member of the Homeland Security and Governmental Affairs Committee, released the following statement in response to the U.S. Postal Service’s announcement of $307 million in net income for the first quarter of fiscal year 2016:

“As expected, last quarter’s numbers reflect continued growth in package delivery and show the Postal Service with higher profits than we’ve seen in a long time thanks to a strong holiday season. But behind these positive numbers lie longstanding financial burdens that threaten the Postal Service’s future. And in just two months, things will get worse when the emergency rate increase that has been keeping the Postal Service’s head above water expires. Even a 13.5 percent increase in packages is not enough to compensate for an expected $2 billion revenue loss should the temporary emergency rate increase expire in April. There is broad consensus among a large number of stakeholders, union leaders, and postal leadership that substantive legislative reforms are urgently needed to head off these expected losses. And, earlier this morning, the President called for a permanent increase in the emergency rate in his fiscal year 2017 budget request, among other reforms contained in my bipartisan legislation, iPOST. I strongly urge my colleagues in Congress to come together around significant, bipartisan reforms that can stabilize the Postal Service’s financial situation and stop the downward spiral of this American institution before it is too late.”

Last month, the Senate Committee on Homeland Security and Governmental Affairs held its first hearing this Congress on the challenges and opportunities facing the U.S. Postal Service, “Laying Out the Reality of the United States Postal Service.”

The two panels of witnesses, which included Postmaster General Megan Brennan, U.S. Postal Service Inspector General David Williams, Acting Chairman Robert Taub of the Postal Regulatory Commission, and representatives from private industry, discussed the need for postal reform legislation from Congress, postal rates, service, and how the ailing Postal Service can innovate, grow revenue, and adapt to the Digital Age.

Sen. Carper introduced the Improving Postal Operations, Service, and Transparency Act of 2015 (iPOST) in September. iPOST reflects the views of a broad range of stakeholders and offers a compromise solution to the difficult issues that Congress and the Postal Service have struggled with for years. The bill includes a comprehensive package of reforms that would place the Postal Service on firm financial footing, stabilize and improve service performance, allow for the development of new products and services, and enhance transparency. The bipartisan bill is cosponsored by Sens. Jerry Moran (R-Kan.), Claire McCaskill (D-Mo.), Roy Blunt (R-Mo.), and Susan Collins (R-Maine).

 

 

2 thoughts on “Senator Carper says USPS finances will get worse in coming months

  1. 5 day street delivery is common cents as a means to reduce wasted cost and focus on revenue generating services that create profitable earnings. Amazon parcel delivery is a prime example of bottomline positive results. Deliver 7 days a week to meet customer demand and generate revenue. Bulk business mail is past history as modern technology has buried it. Mail is no longer the means of communication; purchase a stamp,
    place in postal system for delivery to a physical address 2-3 days is lost in 20th century.
    Communication is now instant with APPS available and new ones being introduced. 21st century communications has no cause to use written word via a postal system.

  2. Senator Carper, who are you working for? PAEA covers retirement for workers for the next 75 years. Most current workers are near retirement age and will live an average of 30 more years. This means we are paying for the retirement of not only the next group of replacement workers, but the group after that as well! To replace the entire work force at least twice means paying for the retirement of over 1 million workers that do not yet work for the service, with nearly half of those not even born yet!

    So once again Senator Carper, who are you working for? Certainly not the American people nor any customer of the Postal Service!

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