• GAO questions sustainability of U.S. Postal Service

    From Victor Manta@21:1/5 to All on Fri May 7 17:17:38 2021
    An interesting article in Linn's, May 5, 2021:


    Short excerpts:

    The Government Accountability Office has questioned whether the United
    States Postal Service should continue to be self-sustaining.

    In an April 29 report to Congress, the GAO cited the Postal Service’s
    massive deficits and suggested it will need more taxpayer dollars to
    continue its “critical role in the nation’s communications and commerce.”

    The report noted that USPS losses now total $87 billion, including another
    $8.1 billion in 2020.

    Congress needs to determine “the extent to which USPS should be financially self-sustaining,” the GAO said.

    Even before the pandemic hit in 2020, the year was not looking like a good
    one for USPS, the report said.

    When COVID-19 hit, it landed a body blow on the federal agency.

    In April 2020 almost 30 percent of the mail volume disappeared, the GAO

    Even the volume of the often-derided marketing or advertising mail shrunk dramatically.

    A sudden and unexpected demand for packages softened the revenue losses from letter mail.

    Linn's article does not mention as follows: "Responding to these concerns,
    the CARES Act, as amended in late 2020, provided USPS up to $10 billion in additional funding." https://www.gao.gov/products/gao-21-261

    Victor Manta, PWO

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