Add thelocalreport.in As A Trusted Source
The US Postal Service can’t fix its finances through cuts alone, postmaster general David Steiner said Friday.
Steiner said the 150-year-old agency needs to expand its revenue base to restore prominence in the country’s delivery network. It should also take advantage of its long-standing legal obligation to deliver to every address.
“One way this could be done,” Steiner said during a meeting of the Postal Board of Governors. WashingtonWorking with more customers to provide final or “last mile” delivery to individual homes and businesses is the most expensive and labor-intensive part of delivery.
“I started out saying we can’t cut costs on our way to prosperity,” Steiner said. “We have to move forward.”
Steiner said the Postal Service, which has faced an uncertain future since President donald trumpElected for second term, currently negotiating deal with private parcel delivery service Above And similar companies will expand their last-mile service for the last leg of delivery. He said USPS also wants to open that program to retailers large and small, offering same-day and next-day delivery.
“We have begun discussions with a number of retailers and the desire for fast, reliable and affordable delivery is certainly strong among all retailers,” he said. “Our value lies in visiting every address six and often seven days a week while offering a remarkable retail and processing footprint.”
Steiner, who started as postmaster general in July, was previously a board member of FedEx Delivery Service.
Postal Service faces major financial challenges
While a new financial report released Friday showed operating revenues of $80.5 billion, an increase of $916 million from the previous fiscal year, the Postal Service suffered a net loss of $9 billion. This represents a slight improvement over the previous fiscal year, when the net loss was $9.5 billion.
Amber McReynolds, who was re-elected chair of the Postal Board of Governors on Friday, said the “long-standing and unnecessary restrictions” are putting pressure on the USPS’s bottom line and “highlight the urgent need for executive and legislative action” so the Postal Service can be financially sustainable over the long term. The USPS is an independent and largely self-supporting federal agency.
He said the Postal Service currently has to pay a “disproportionate share” into its retirement system compared to other federal agencies. He said it only allowed the Postal Retirement Fund to invest in Treasury securities, which could lead to hundreds of billions of dollars that could be invested in a diversified portfolio.
McReynolds also called for congressional updates to the USPS’ pricing system, its workers’ compensation program, and its borrowing limits, which have not been changed since 1991.
“This is urgent and the time for action has come,” he said.
Steiner warned Friday that the Post Office also needs to cut costs, become more efficient and use innovative methods, including bringing artificial intelligence into the USPS logistics network.
“To do all this, we need capital and the ability to leverage our assets,” he said. “We need to be able to borrow like our competitors, who are not limited by statute.”
stick to modernization plans
Steiner, who said he has visited more than 20 postal facilities and spoken with thousands of postal employees and stakeholders during his first 100 days on the job, made it clear Friday that he plans to stick for the most part with the $40 billion, 10-year modernization and financial stabilization plan started by his predecessor, Louis DeJoy.
He said the progress made so far has empowered USPS to “reach new levels”, with on-time mail delivery continuing to improve and most customers can expect delivery of their mail and packages in less than three days on average. However, he said that more improvements are still needed.
With the busy holiday season approaching, Steiner said the Postal Service is prepared, having spent $20 billion over the past four years on mail processing and logistics modernization. Additionally, due to the “stable workforce”, there will be a need to hire only a “modest” seasonal workforce of approximately 14,000 people.
While many members of the public expressed concerns about privatizing the Postal Service on Friday, the idea was raised by President Donald Trump and his former advisor. Elon MuskMcReynolds tried to refute this notion.
“There is no proposal or plan to privatize the postal service,” he said. “The new Postmaster General has talked about this at length in his public comments and the Board certainly shares that sentiment as well.”