(TheConservativeTimes.org) – On Tuesday, the USPS announced a 6.5 billion-dollar net deficit for the fiscal year ending September 30 and stated it would not break even in 2023 due to a decrease in first-class mail traffic to its lowest level since 1968.
U.S. Postmaster General Louis DeJoy said revenue was down 0.4% to $78.2 billion. The loss included $2.6 billion in inflation charges beyond what they predicted and what they were able to recoup. The agency has increased stamp rates and is in the beginning of a decade-long reorganization strategy, announced in 2021, to eliminate $160 billion in expected losses over the following decade.
Postal service revenue climbed $515 million in 2023 despite a 6.1% drop in first-class mail volume. Most people write letters and pay bills with first-class mail, which produced $24.5 billion of the post office’s revenue this year.
DeJoy noted that the USPS has lowered the $160 billion in losses expected in 2021 to just under $60 billion. Despite significant intended cuts in business operations and increased package revenues, the company won’t break even until 2024. Next year, USPS hopes to save $1 billion by reducing transportation expenses.
According to reports, the United States Postal Service has 640,000 workers and reported a 2.6% rise in employee salary and benefits expenditures to $52.8 billion. The total operational expenditures for the year were $85.4 billion, up $5.8 billion over the previous year. USPS stated it wasn’t paying the entire five billion dollars in pension plan payments to maintain solvency.
The USPS was given a 10-year financial reprieve of almost $50 billion thanks to a law signed by President Joe Biden in April 2022.
And just last month, the postal service said that it wants to increase the price of first-class postage from 66 cents to 68 cents starting January 21.
A USPS historian, Christopher Shaw, advises diversifying to boost revenue. He suggested it may cooperate with government entities to supply post office services, such as fishing and hunting license sales. However, Shaw notes that the USPS has seldom made a profit.
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