The United States Postal Service is planning to ask the Postal Regulatory Commission to approve an increase in the cost of postage, an annual ritual that always raises the ire of the public. But this year, that regularly anticipated plea for higher rates is just the tip of the iceberg when it comes to financial issues the post office is facing. At the end of 2010, the USPS had plans to close 491 post offices in the wake of the $8.5 billion dollars/year it lost, and now it is reviewing an additional16,000+ facilities – over half the country’s post offices, that are operating at a loss.
Bad news for jobs
Sure, closing post offices will help the USPS deficit, but according to US law the Postal Service has an obligation to provide service to “all communities” at a reasonable price. Congress may try to resist a sweeping reform and let the battle be fought district by district, community by community.
With some 2000 postal facilities coming on the block for closure, there will be thousands of jobs eliminated at a time when the employment picture is just starting to show some signs of life. While the USPS cannot continue operating in red ink, the debate is raging over cutting government spending by as much as $100 billion dollars annually, and Congress could be forced to take a hard look at these proposed closures.
A change of rules
Profitability is currently not an approved reason for closing a branch of the United States Post office. The USPS may only shut down locations under strict limitations: for lease expirations and maintenance problems. Changing these rules to allow for closure of more than half of the nation’s postal facilities is a political hot potato that lawmakers had hoped to avoid.
The United States Postal Service is requesting that Congress change the law to allow for quick closure of the most unprofitable branches in their system. Now the lawmakers will have to weigh how this will play out in their own districts if service is diminished. A win in deficit reduction has been promised, but the price may be very high in certain locations where service will be substantially downgraded and unemployment is already well above the national average.
Closings in your neighborhood
While Americans have demanded an immediate halt to government overspending and a serious effort by their elected officials to reduce the federal deficit, it remains to be seen how they will react when the changes occur in their own neighborhoods and affect their own communities. Lawmakers have vowed that every spending item is on the table for discussion and cuts. The reality of the situation may hit very close to home.
Vicki Clinebell - Vicki is a lover of the written word, and finds excellence in all its forms from the back of packaging to acclaimed plays and novels. It's ...
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