Money-troubled post office turning to Congress - KSWO 7News | Breaking News, Weather and Sports

Money-troubled post office turning to Congress

Washington_Facing dire financial conditions, postal officials are turning to Congress for help.

Postmaster General John Potter and other top agency officials were facing the House Oversight subcommittee on the federal workforce and post office Wednesday.

The post office was $2.8 billion in the red last year and is facing even larger losses this year due to the sharp decline in mail volume in the weak economy.

Potter has raised the possibility of cutting mail delivery from six days a week to five, and is also seeking relief from the requirement to set aside several billion dollars annually to prefund retiree medical care.

"With the Postal Service facing budget shortfalls the subcommittee will consider a number of options to restore financial stability and examine ways for the Postal Service to continue to operate without cutting services," subcommittee chairman Stephen F. Lynch, D-Mass., said in announcing the hearing.

Last week, the post office said it plans to offer early retirement to 150,000 workers and is eliminating 1,400 management positions and closing six of its 80 district offices across the country in cost-cutting efforts.

The agency posted a $384 million loss in the first quarter of the fiscal year - October through December - which is usually the busiest period because of the holidays.

Officials said the economic recession contributed to a mail volume drop of 5.2 billion pieces compared with the same period last year. If there is no economic recovery, the USPS projects volume for the year will be down by 12 billion to 15 billion pieces of mail.

Over the past year the post office says it has cut 50 million work hours, stopped construction of new facilities, frozen salaries for executives, begun selling unused facilities and cut post office hours.

The USPS does not receive a taxpayer subsidy for its operations.

___

On the Net:

Postal Service: http://www.usps.com

Randolph E. Schmid, AP Writer, © 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
  • Local NewsNewsMore>>

  • School victims honored at Billboard Awards; Janet, BTS shine

    School victims honored at Billboard Awards; Janet, BTS shine

    Sunday, May 20 2018 10:51 AM EDT2018-05-20 14:51:24 GMT
    Sunday, May 20 2018 11:24 PM EDT2018-05-21 03:24:18 GMT
    (AP Photos/Invision, File). FILE - In a May 7, 2018, file photo, Ariana Grande, left, attends The Metropolitan Museum of Art's Costume Institute benefit gala celebrating the opening of the Heavenly Bodies: Fashion and the Catholic Imagination exhibitio...(AP Photos/Invision, File). FILE - In a May 7, 2018, file photo, Ariana Grande, left, attends The Metropolitan Museum of Art's Costume Institute benefit gala celebrating the opening of the Heavenly Bodies: Fashion and the Catholic Imagination exhibitio...
    After celebrating her 52nd birthday and the 25th anniversary of her groundbreaking "janet.".
    After celebrating her 52nd birthday and the 25th anniversary of her groundbreaking "janet.".
  • Maduro declared winner in disputed Venezuela election

    Maduro declared winner in disputed Venezuela election

    Sunday, May 20 2018 12:22 AM EDT2018-05-20 04:22:02 GMT
    Sunday, May 20 2018 11:24 PM EDT2018-05-21 03:24:07 GMT
    (AP Photo/Ariana Cubillos). Venezuela's President Nicolas Maduro makes the victory sign after a meeting with former Spanish Prime Minister Jose Luis Rodriguez Zapatero at the presidential palace in Caracas, Venezuela, Friday, May 18, 2018. Maduro is se...(AP Photo/Ariana Cubillos). Venezuela's President Nicolas Maduro makes the victory sign after a meeting with former Spanish Prime Minister Jose Luis Rodriguez Zapatero at the presidential palace in Caracas, Venezuela, Friday, May 18, 2018. Maduro is se...
    Venezuelans vote Sunday in a presidential election with Nicolas Maduro expected to win a second six-year term, despite a deepening crisis that's made food scarce and inflation soar as oil production in the once...
    Venezuelans vote Sunday in a presidential election with Nicolas Maduro expected to win a second six-year term, despite a deepening crisis that's made food scarce and inflation soar as oil production in the once wealthy nation plummets.
  • As Trump pressures DOJ, Giuliani says probe may end by Sept

    As Trump pressures DOJ, Giuliani says probe may end by Sept

    Sunday, May 20 2018 2:11 PM EDT2018-05-20 18:11:29 GMT
    Sunday, May 20 2018 11:23 PM EDT2018-05-21 03:23:33 GMT
    Trump referred to some who cross the border illegally as "animals," not people. (Source: AP Photo/Evan Vucci)Trump referred to some who cross the border illegally as "animals," not people. (Source: AP Photo/Evan Vucci)

    President Donald Trump says he'll demand that the Justice Department review whether the department or the FBI infiltrated his presidential campaign for political purposes, and whether any demands or requests came...

    President Donald Trump says he'll demand that the Justice Department review whether the department or the FBI infiltrated his presidential campaign for political purposes, and whether any demands or requests came from the Obama administration.

Powered by Frankly