While the lame-duck Congress faces the so-called “fiscal cliff,” there’s another boondoggle crying out for action. The US Postal Service is about to post a $15 billion loss for fiscal year 2012.
On Nov. 15, the mail carrier will release its final financial results for fiscal 2012, with predicted losses in the $15 billion range. Since July, the Postal Service has defaulted on $11.1 billion in legally required payments to a future-retiree health care fund. It has also hit a $15 billion borrowing ceiling with the U.S. Treasury, raising the risk of a cash-flow crisis.
In an email, USPS spokesman Dave Partenheimer acknowledged that many issues are competing for lawmakers’ attention, but added that it is “extremely important” that comprehensive postal reform legislation be addressed “as part of our plan to return to long-term financial stability.”
The way to solve this problem for the long term is to end the monopoly and infuse the mail delivery system with competition.
