The U.S. Postal Service fiscal year (October 1, 2016 – September 30, 2017) results, just announced last month, report an 11 consecutive year decline.
The USPS reported a drop in overall revenue totaling $1.8 billion compared to the previous year, however package volume did increase. This gain of 11.8% in shipping and packing, helped to offset the decline in mail volume. Operating expenses also fell by 6.1%.
Words from Postmaster General and CEO
Megan J. Brennan, Postmaster General and CEO states, “Our financial situation is serious, though solvable. There is a path to profitability and long-term financial stability. We are taking actions to control costs and compete effectively for revenues in addition to legislative and regulatory reform. We continue to optimize our network, enhance our products and services, and invest to better serve the American public.”
H.R.756 – Postal Service Reform Act of 2017
Brennan discussed the importance of taking action to create a more stable financial future by passing the H.R.756 – Postal Service Reform Act of 2017. She states that the bill, “…if passed, would enable the Postal Service to invest in the future and to continue to provide affordable, reliable and secure delivery service to every business and home in America. Enactment of the bill, favorable resolution of the Postal Regulatory Commission’s pricing system review, and continued aggressive management actions will return the Postal Service to financial stability.”
The Postal Regulatory Commission’s decision could give more freedom to the USPS to increase prices beyond the rate of inflation, impacting the pricing system to the greatest extent in nearly 50 years. Due to inflation, the first class stamp price is set to increase by one penny this January.
Paying the Federal Government
The USPS admits they were unable to make payments to the federal government this fiscal year. Chief Financial Officer and Executive Vice President Joseph Corbett states, “It would have left the Postal Service with insufficient liquidity to ensure that we will be able to cover our current and anticipated operating costs, make necessary capital investments, and absorb any contingencies or changes in the marketplace. We will continue to prioritize the maintenance of adequate liquidity to ensure the Postal Service is able to perform our primary mission of providing universal service to all Americans.”