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  (Source: NBC Universal)
This move would have saved USPS about $2 billion annually

The United States Postal Service (USPS) was hoping to axe Saturday mail deliveries in an attempt to save money, but Congress isn't having it. 

USPS announced today that the Board of Governors of the United States Postal Service met yesterday to talk about the Continuing Resolution for government funding. However, Congress didn't approve the new national delivery schedule.

The new national delivery schedule consisted of package deliveries Monday through Saturday and mail deliveries Monday through Friday starting August 5, 2013. 

"Although disappointed with this Congressional action, the Board will follow the law and has directed the Postal Service to delay implementation of its new delivery schedule until legislation is passed that provides the Postal Service with the authority to implement a financially appropriate and responsible delivery schedule," said USPS. 
"The Board believes that Congress has left it with no choice but to delay this implementation at this time. The Board also wants to ensure that customers of the Postal Service are not unduly burdened by ongoing uncertainties and are able to adjust their business plans accordingly."
Back in February of this year, USPS announced its plan to cut Saturday mail delivery to only five days per week (eliminating Saturday). It said this would save USPS about $2 billion annually.

For fiscal 2012, USPS saw a net loss of $15.9 billion (three times the loss record one year previous).

USPS has been in a financial decline mainly because of digital mail options, such a electronic letters, bills, etc. This eliminates costs of stamps and shipping charges. 

Technology is taking over, and the issue is that USPS can't keep up. In January, it was reported that USPS wanted to be more digital-friendly by working on a digital platform called MyPost, which will allow customers to log in and view all packages that they'll be receiving as well as those they've already received instead of searching several different sites that the packages may be coming from.

However, Paul Vogel, president of digital solutions at USPS, revealed that his office is like "a San Jose startup," with only 15 Android/Apple developers, consultants coming and going, one computer and his BlackBerry smartphone. Technological restrictions make upgrading hard to come by.

Source: USPS

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RE: Financial decline reasons
By DanNeely on 4/10/2013 3:48:22 PM , Rating: 2
That law was a standard congressional case of reacting too late to a coming problem. If nothing was done, the pending implosion of mail volume would have eventually put the post office in the position of having catastrophically large pension funding shortfalls because its revenue would drop massively and rapidly while pension obligations would last until the last of the big post office generation died off a few decades later.

Filling the pension fund up while money was still plentiful actually is a good way to prevent that problem if you can react fast enough to do it. And had Congress done something about it back in the mid 90s they might have been able to pull it off. Instead they didn't act until mail volume was already starting to collapse. Without something like this the post offices short term finances would look much better; but in a decade or so they'd have a much messier and more immediate crisis when they started bouncing pension checks.

RE: Financial decline reasons
By Diablobo on 4/13/2013 10:12:34 PM , Rating: 2
The argument that there was going to be some impending pension funding crisis and therefore Congress acted responsibly to avert it might hold some merit if it weren't for the political circumstances and timing of the bills passage. Why did they wait until the GOP lost the 2006 midterm elections and control of Congress? They passed it in the lame duck session as one last parting shot to sabotage the USPS. It was a cowardly fatal blow by a defeated and vindictive departing Congress. That any Democrats voted for it either points to their ignorance of its implications or their complicity in wanting to kill the USPS.

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