USPS Reports Net Deficit for August
The U.S. Postal Service generated a net deficit of $38 million before the escrow allocation during August, according to financial and operating statements released by the agency earlier this week.
The Civil Service Retirement System Funding Act requires the USPS to place $3 billion in an escrow account by Sept. 30 to cover the difference between the CSRS costs before and after the law's implementation.
The USPS said it is allocating $250 million monthly for purposes of reconciling its financial position.
After the escrow allocation, the postal service's net deficiency for July becomes $288 million.
USPS revenues for August were $6.3 billion, or $143 million over plan and 6.6 percent more than August 2005. Expenses for the month were $6.3 billion, or $223 million over plan and 6.9 percent more than same period last year.
Year-to-date revenue through July is 0.8 percent, or $507 million higher than plan and 4.2 percent above the same period last year. Year-to-date expenses are 0.8 percent, or $535 million higher than plan and $ 2.9 billion above the year-ago period.
Year-to-date net income before escrow allocation is $1.3 billion. However, the net deficiency after the escrow allocation is $1.5 billion.
Total year-to-date mail volume is 1.6 billion pieces, or 0.8 percent above the same period last year. First-Class Mail volume is 0.4 percent below last year. Standard Mail and Priority Mail are 1.8 percent and 4.6 percent above last year, respectively.