Taxpayers are facing a massive post office bailout.
Currently, the post office is $100 billion in debt.
It lost about $5.5 billion in 2014. And that’s despite the $569 million increase in operating revenue. They refuse to pay $5 billion in prefunded pensions every year.
It’s a bureaucratic nightmare…
Necessary reforms are hindered by:
1) It’s a government protected monopoly with no competition driving it to efficiency, innovation and customer services.
2) It’s filled with bureaucratic rules dictated by the powerful union bosses.
3) And Congress plays politics with it. Political, not business decisions are made.
The latest attack on fiscal sanity is from liberal politicians trying to stop phase 2 of the consolidation of the facilitated program.
This program is for operational efficiency and to lower overhead costs.
It’s one small step to stabilize postal rate increases that are hurting business and consumers who are forced to deal with rising postage costs.
Phase 1 was successfully completed in 2013. 141 parcel processing facilities were consolidated, saving about $865 million.
The ad agency I own mails about 4 million direct mail pieces a month for clients. We found no problems or an adverse impact from the consolidation of our clients.
Phase 2 will save an estimated $750 million.
If you’re willing to call or write your senator and congressman, call 310-212-5727 or email me at [email protected]