Comments on: One Reason the Post Office is Broke http://www.ampc.org/blog/2010/07/why-is-the-post-office-broke/ The Voice of the Pack & Ship Community Wed, 01 Feb 2012 14:49:05 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: A Meeting with Postmaster General Donahoe < Blog Archive < Blog | Associated Mail & Parcel Centers http://www.ampc.org/blog/2010/07/why-is-the-post-office-broke/comment-page-1/#comment-3225 A Meeting with Postmaster General Donahoe < Blog Archive < Blog | Associated Mail & Parcel Centers Thu, 17 Feb 2011 18:23:27 +0000 http://www.ampc.org/blog/?p=818#comment-3225 [...] at 100%.  For more information on how this Federal Government deficit reduction trick works, see One Reason the Post Office is Broke.  Although no real money changes hands, it is unlikely that any money owed to the USPS by the [...] [...] at 100%.  For more information on how this Federal Government deficit reduction trick works, see One Reason the Post Office is Broke.  Although no real money changes hands, it is unlikely that any money owed to the USPS by the [...]

]]> By: Larry Adams http://www.ampc.org/blog/2010/07/why-is-the-post-office-broke/comment-page-1/#comment-874 Larry Adams Wed, 28 Jul 2010 20:08:26 +0000 http://www.ampc.org/blog/?p=818#comment-874 The sleight of hand that Congress uses in regards to USPS has been going on for many years. During the 1970's to 1990's, when the Post Office rate increases only came every 3-4 years, the Post Office would show a "profit" in the first years of the rate cycle, and Congress would include the USPS in the budget to reduce the apparent deficit. In the later years of the rate cycle, when the Post Office was "losing" money (offsetting the earlier profits to be revenue neutral over time), Congress would take USPS "off budget", again reducing the apparent deficit. A few years ago, Congress decided to require the Post Office to pre-fund retiree health benefits, something no other federal agency is required to due, including other government-owned corporations like the Tennessee Valley Authority. In reality, the money is put into the general fund, and is essentially a tax on USPS, simply because Congress has the power to do so. The interesting thing is that probably half of the employees of USPS will never reach retirement age, because they will quit before then. Or become disabled before then, and go out on disability retirement. The sleight of hand that Congress uses in regards to USPS has been going on for many years. During the 1970′s to 1990′s, when the Post Office rate increases only came every 3-4 years, the Post Office would show a “profit” in the first years of the rate cycle, and Congress would include the USPS in the budget to reduce the apparent deficit.

In the later years of the rate cycle, when the Post Office was “losing” money (offsetting the earlier profits to be revenue neutral over time), Congress would take USPS “off budget”, again reducing the apparent deficit.

A few years ago, Congress decided to require the Post Office to pre-fund retiree health benefits, something no other federal agency is required to due, including other government-owned corporations like the Tennessee Valley Authority. In reality, the money is put into the general fund, and is essentially a tax on USPS, simply because Congress has the power to do so. The interesting thing is that probably half of the employees of USPS will never reach retirement age, because they will quit before then. Or become disabled before then, and go out on disability retirement.

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