The U.S. Postal Service’s May 8 quarterly report shows that despite conventional wisdom, the agency is doing well from a financial standpoint – without a dime of taxpayer money.
The Postal Service had an operating profit of $313 million in Fiscal Year 2015’s second quarter (Jan. through March), an increase of $52 million over the same period last year. That brings the operating profit year-to-date to $1.4 billion – more than all of last year’s black ink.
These results show the impressive Postal Service financial turnaround continuing in full force.
Package revenue continues to skyrocket with an 11.2 percent increase this year; first-class letters and standard mail also are up. This three-year trend in operating profitability makes clear the need to strengthen – not degrade – the now-profitable networks.
The Postal Service, based in the Constitution, is a national treasure that provides Americans with the world’s most affordable delivery network and long has been the most trusted government agency – with widespread support from the public and lawmakers.
Postmaster General Megan Brennan said it best. “We’re pleased with the increase in our controllable net income compared to the same period last year, which demonstrates that our cost containment and revenue strategies are delivering results. We also took significant steps during the quarter to improve our long-term operating model, which will help drive greater long-term efficiencies throughout our network.”
The Postal Service is in much better financial shape than advocates of a slash-and-shrink approach to Postal Service “reform” care to admit. The red ink has nothing to do with the mail. In 2006, Congress mandated that the Postal Service pre-fund retiree healthcare 75 years out and pay for it all over a decade. That annual $5.6 billion charge is the red ink – a manufactured crisis that Congress created and Congress can fix. No other federal agency or private company is required to pre-fund for even one year. Already, the Postal Service has more than $49 billion in the pre-funding account.
It’s time now for lawmakers to fix the fiasco they created.
Letter carrier, Carmel