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Interesting,,,,


U.S. Post Office may cut one day of mail delivery per week
Posted by Randolph E. Schmid/Associated Press January 28, 2009 15:37PM

WASHINGTON -- Massive deficits could force the post office to cut out one day of mail delivery, the postmaster general told Congress on Wednesday, in asking lawmakers to lift the requirement that the agency deliver mail six days a week.

If the change happens, that doesn't necessarily mean an end to Saturday mail delivery. Previous post office studies have looked at the possibility of skipping some other day when mail flow is light, such as Tuesday.

Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year. "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.

Total mail volume was 202 billion items last year, over 9 billion less than the year before, the largest single volume drop in history.

And, despite annual rate increases, Potter said 2009 could be the first year since 1946 that the actual amount of money collected by the post office declines.

"It is possible that the cost of six-day delivery may simply prove to be unaffordable," Potter said. "I reluctantly request that Congress remove the annual appropriation bill rider, first added in 1983, that requires the Postal Service to deliver mail six days each week."

"The ability to suspend delivery on the lightest delivery days, for example, could save dollars in both our delivery and our processing and distribution networks. I do not make this request lightly, but I am forced to consider every option given the severity of our challenge," Potter said.

That doesn't mean it would happen right away, he noted, adding that the agency is working to cut costs and any final decision on changing delivery would have to be made by the postal governing board.

If it did become necessary to go to five-day delivery, Potter said, "we would do this by suspending delivery on the lightest volume days."

The Postal Service raised the issue of cutting back on days of service last fall in a study it issued. At that time the agency said the six-day rule should be eliminated, giving the post office, "the flexibility to meet future needs for delivery frequency.

A study done by George Mason University last year for the independent Postal Regulatory Commission estimated that going from six-day to five-day delivery would save the post office more than $1.9 billion annually, while a Postal Service study estimated the saving at $3.5 billion.

The next postal rate increase is scheduled for May, with the amount to be announced next month. Under current rules that would be limited to the amount of the increase in last year's consumer price index, 3.8 percent. That would round to a 2-cent increase in the current 42-cent first class rate.

The agency could request a larger increase because of the special circumstances, but Potter believes that would be counterproductive by causing mail volume to fall even more.

Dan G. Blair, chairman of the Postal Regulatory Commission, noted in his testimony that cutting service could also carry the risk of loss of mail volume. He suggested Congress review both delivery and restrictions it imposed on the closing of small and rural post offices.

The post office's problem is twofold, Potter explained.

"A revolution in the way people communicate has structurally changed the way America uses the mail," with a shift from first-class letters to the Internet for personal communications, billings, payments, statements and business correspondence.

To some extent that was made up for my growth in standard mail -- largely advertising -- but the economic meltdown has resulted in a drop there also.

Potter also asked that Congress ease the requirement that it make advance payments into a fund to cover future health benefits for retirees. Last year the post office was required to put $5.6 billion into the fund.

"We are in uncharted waters," Potter said. "But we do know that mail volume and revenue -- and with them the health of the mail system -- are dependent on the length and depth of the current economic recession."

He proposed easing the retirement pre-funding for eight years, while promising that the agency will cover the premiums for retirement health insurance.

At the same hearing the General Accounting Office agreed that the post office is facing an urgent need for help to preserve its financial strength. But the GAO suggested easing the pre-funding requirement for only two years, with Congress to determine the need for more relief later.

Potter noted that the agency has cut costs by $1 billion per year since 2002, reduced its work force by 120,000, halted construction of new facilities except in emergencies, frozen executive salaries and is in the process of reducing its headquarters work force by 15 percent.

They can cut my whole week.. all I ever get from them are bills and junk.

Even the bills will disappear before too long. She pays them all on-line.

The junk mail is all nothing but campfire starter. Once in a while you get a 20% off coupon for Bed Bath and Beyond.

My guess is even The Marine Corps Gazette could be had on-line too.

Good Bye USPS.

Good, should have done this years ago.

They should have saw how the internet was going to affect postal volume. Most of my bills are paid electronically, I don't reveive paper statements from most of my bills, I use e-mail instead of writing letters and most people I know send out electronic invitations to parties. If you figure most of us are doing that same thing, that's a BIG chunk to lose. And I don't receive as much junk mail as before (they're sending SPAM now). They built all these post offices and huge mail sorters thinking volume was only going to rise.....now they're screwed. And the internet will only take more business away from them.

I called my credit card company 2 weeks ago and screamed at them because somehow they accidentally sent me a paper bill. Personally, I don't recieve much in my mailbox. I think one day a week I get something useful. I also registered to eliminate junk mail to my home. Life is good.. for all I care they could do away with all of it. I pay all my bill online and I can't think of a good reason get anything in the mail. If I have to send something it's in the form of a package. I literally haven't mailed one single item in 2+ years.

j/c

I think they should go one step further and go to 3 days, have all their people work 12 hour shifts. Have them work a 4 hour day doing nothing but sorting and set up on that 4 hour day.

Makes sense too me, since this is government, it will never happen.


KING

Sounds like a good idea to me, though I would just cut Saturday....splitting delivery off days wouldn't do much to reduce the overall workforce, which wouldn't cut much from the budget.

The USPS is in trouble and they may be too late to the game to fix it. They want to raise rates every 2 months and less and less mail is being sent.

I read awhile back about the possibility of the mail at some point being delivered to central locations and then you go pick it up when you want it.

Or it will become a privatized business.

No matter what, it can't survive in it's current state.

A 1st class stamp is 42 cents...they will even pick it up in your box if you don't want to go to a mailbox...and you can send something to ANYWHERE in the country a few steps from the door in 2-3-4 days tops...

Think about that....that is pretty darn cheap when you get right down to it. The USPS loses money to UPS and other services who carry the stuff that pays.

Nothing against UPS or Fed-X, but I ship everything USPS.

Thanks Peen for keeping me employed..... Not only that, but it's the only service that delivers Express Mail on every major holiday to include Christmas.....

Well, if it's only about tax refunds then they can send all of those to a government location and we can all go pick them up. Don't get me wrong, Mike, I'm not trying to get you put out of a job...I'm just not a big fan of our government.

It's more than just that too. If the economy was doing well and fuel prices didn't rise the way they did, the world wouldn't be in the hell-hole it's in now. Just think about it, over 35,000 jobs were lost Monday and the rich keep getting richer....

I'm sick of my mail man putting mail in the wrong mailboxes. I think I'm lucky I haven't had anyone charging things in my name yet. I get other peoples mail all the time, and he's put my credit card bill in someone else box. I haven't seen my W-2 yet, I think I should start wondering who he gave that to.

well there goes my netflix but maybe they should just cut off saturday.. I think we can do with weekend mail..

I got your back Mike. I still make out checks for each and every bill, and mail them all in. None of this on-line crap or direct withdraw for me.

Reason mail volume dropped last year:

1) Rise in electronic payments
2) Rise in electronic communications
3) Economy down, businesses slow = less statements going out.
4) More and more people opting out of mass mailings.
5) Banks out of cash and quit sending out "pre-approved" credit offers
- I noticed #5. I used to get 5-6 capital one, bankone, and chase credit card offers every week. Now I get that many in a month.

I took myself off the credit card list years ago and love it. Probably need to do it again, just to be safe. Now I get to search out credit companies I want to do business with instead of them hounding me.

I did that too several years ago. I'm guessing it expired since about 2 years ago the offers started coming in again.

Now I just write "Return to sender" on the envelope and let the USPS handle it 2x for the same price.

So YOU'RE the one causing the price of postage to go up? It's easier to opt out, although I know a lot of people that send those things back to make a point.

GM still ocasionally makes payments with beads and wampum ... like he did when he was younger.

Yes I do, but I did have to give up the peace pipe

How much did you say that Michigan was purchased for???

if they are going to do it, just do away with saturday...

but honestly, at my work, our mail has actually increased... like 4x