News Byte: Postal Board Asks for Reform for Christmas

Share this content:
Corbett: Only nine days of cash on hand
Corbett: Only nine days of cash on hand

Postal Board of Governors Chairman Mickey Barnett closed today's monthly meeting by asking all stakeholders in the future health of the Postal Service to tell Congress not to give them a lump of coal this Christmas. “After five years,” he says, “we do need some comprehensive legislative reform.”

Postal Service CFO Joe Corbett reported that USPS would end 2013 with a $5 billion loss and liabilities exceeding assets by $40 billion. While he lauded the Postal Service's first revenue increase since 2008 and new business building initiatives such as the Sunday delivery deal finalized with Amazon this week, he said all the agency's best efforts fall short.

Standard mail increased 3% on the year and the package business surged by 8%. Overall mail volume decreased by two billion pieces.

“This growth cannot make up for the decline in First Class mail or fill the $49 billion hole we're in,” said Corbett in detailing 2013 financial results. “Without postal reform we will continue to sustain large losses.”

Corbett noted that USPS currently has nine days of operating cash on hand, compared to five times that much held by competitors such as UPS and Federal Express. “And they're making money while we're losing it,” he added.

The board estimated that its cash position would improve to 16 to 17 days of operating expenses if the Postal Regulatory Commission grants its exigent rate increase.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here