), Chart 2. N.W., Suite 900 The Postal Service has a total debt of around $120 billion, according to the Government Accountability Office (GAO). Use our quick tools to find locations, calculate prices, look up a … Chart 5. 1212 New York Ave. Pension funds get invested to grow over time so they can meet obligations. $71.1 B. (CNSNews.com) – The U.S. Postal Service has hit its $15 billion debt limit and can't borrow anymore from the U.S. Treasury. The Postal Service presently does have $10 billion in cash, so it certainly can minimally service its debt. It’s a social network. USPS: 2019 Pay Dates and Leave Year. $67.8 B. That is the eighth annual loss in a row and the third-highest ever. Mail volume dropped more than a quarter, and has not rebounded. Postal Service (USPS) currently owes $99.8 billion in benefit payments to its current and retired workers but does not have the money, and if Congress does not act to fix the problem, the Postal Service may have to “implement contingency plans to ensure that mail delivery continues,” according to a new report by the Government Accountability Office (GAO). It’s only that low if you include Social Security and Medicare, which are mandatory. You don’t require full funding in advance, including pensions for people who haven’t been born, let alone hired, unless you want to make it difficult to run the organization. Meanwhile, customers, particularly in rural areas, grouse about service reductions. USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its … Controllable loss for the year was $3.4 billion, an increase of $1.5 billion compared to the prior year. My credits include Fortune, the Wall Street Journal, the New York Times Magazine, Zenger News, NBC News, CBS Moneywatch, Technology Review, The Fiscal Times, and Inc. Get. © 2021 Forbes Media LLC. Package volume continued to increase, but only by 0.3 percent. USPS’s Costs Regularly Outstrip Its Revenues ($Billions). The agency added $7.3 billion in debt in fiscal 2019 related to the retiree … You may opt-out by. (Photo by Spencer Platt/Getty Images). When you were, say, 25, would you expect in ten years to have put aside full retirement savings for yourself and your children and maybe even grandchildren? This depresses the post’s revenue, forcing it to take on more debt, which in turn puts it under greater financial pressure. $70.6 B. Share. Virginia Incumbent Attorney General Seeks Reelection, Skips Governor’s Race. That is largely driven by the diminishing First-Class Mail service, which shrank by 3.1 percent. $67.3 B. Postal reform is very hard because some stakeholder is inevitably forced to give something up—mailers are loath to swallow large price increases, while postal workers will not accept compensation cuts. The U.S. Post Office owes $100 Billion in benefits to its workers/retirees but doesn’t have the money. Postal Service saw a slight increase in package volume for fiscal 2019, after its first quarterly decline in years during Q3, as the agency is being challenged by Amazon and FedEx rerouting packages to their own networks. $2,000 Stimulus Checks Bad News For Student Loan Forgiveness. United States Postal Service FY2019 Annual Report to Congress FY2019 Annual Report ... Debt $ 11,000$ 13,200$ 15,000(16.7)% (12.0)% ... year 2019, the Postal Service recorded a net loss of $8 8 billion Revenues continue to be pressured by the ongoing USPS’s pension obligations remain about $21 billion short of full funding. The Postal Service was designed to be a self-funding agency. It’s no surprise, then, that Congress has started looking for ways to remedy this. It was 44% of the 2020 federal discretionary budget. The Postal Service said it reduced its debt level during 2019 by $2.2 billion, finishing the year with $11 billion in debt outstanding. According to its FY2018 Annual Report to Congress, it operates [6] “34,700 Post Offices and [has] 58,000 retail partners and other access points, more than 232,000 delivery vehicles, and 8,500 pieces of automated processing equipment. “The USPS is not in debt. 2021 AG Elections . Instead, you’d start over. Welcome to USPS.com. NEW YORK, NEW YORK - AUGUST 05: A United States Postal Service (USPS) mail box stands in Manhattan ... [+] on August 05, 2020 in New York City. As stated in GAO’s 2019 High-Risk update, USPS faces financial challenges that include the following: Poor financial situation: USPS’s overall financial condition is deteriorating and unsustainable. IT’S NOT THE INTERNET It’s a business network. 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