Sign up for our daily newsletter so you never miss a beat on all things federal The agency projects that higher-than-expected costs will lead to a $4.5 billion net loss in fiscal 2023. USPS reported $78.5 billion in revenue in fiscal 2022, a $1.7 billion increase from the year prior, but not enough to make up for a high rate of inflation. The USPS Board of Governors approved a resolution Thursday that allows the agency to borrow up to $3 billion in 2023, but not exceed its statutory borrowing limit of $15 billion.īoard Chairman Roman Martinez IV said USPS paid off $1 billion in debts owed to the Treasury Department in April, and is on track to repay another $2-3 billion in debt over the next few years. “I support this plan because it requires improving levels of operational efficiency, makes needed levels of investment in our infrastructure and commits to aggressive growth and service performance targets,” Stroman said. Governor Ron Stroman, a former deputy postmaster general, said he was “unhappy” with the projected financial losses, but expressed support for the 10-year reform plan, after previously raising some concerns about the plan, including implementing a slower delivery standard for about 40% of first-class mail. Without the postal reform legislation, USPS would have reported a $4.4 billion net loss for fiscal 2022. It also forgave USPS’s obligation to pay $57 billion in delinquent payments to its retiree health benefits fund.īy eliminating the pre-funding mandate and requiring all future postal retirees to enroll in Medicare parts B and D, the legislation is projected to save USPS an additional $50 billion over the next 10 years. The long-awaited reform bill eliminated a 2006 mandate from Congress for USPS to pre-fund retiree health benefits. However, USPS Chief Financial Officer Joe Corbett said the financial improvement was “almost exclusively” because of the Postal Service Reform that was signed into law in April. USPS reported a net income of $56 billion for fiscal 2022, compared to a $4.9 billion net loss in fiscal 2021. “While we are committed to our public service mission, we must move at the speed of private industry, if not faster, to effect this transformation before we again begin to drain our cash position,” DeJoy said. Without stakeholder cooperation, a lot longer.”ĭeJoy said plans underway to modernize the USPS delivery network, which includes shifting some letter carrier operations to large, regional Sort and Delivery Centers, would help the agency increase revenue, cut operating costs and reduce its carbon footprint. “With stakeholder cooperation, this will take five years to mostly accomplish. “As I have said before, this means change - a lot of it - and it takes time,” DeJoy said. USPS, under this plan, also anticipated fully digging out of its long-term financial hole by 2030, going from $160 billion in projected net losses to a $200 million net profit. Under the “Delivering for America” plan, released in March 2021, USPS expected to start breaking even on its annual finances as soon as 2023, but no later than 2024. We share details from efforts at Coast Guard, CBP, CISA and Energy in this exclusive executive briefing. Insight by Ciena and AT&T: Mission requirements to get speed and high bandwidth to users far and wide is leading agencies to adopt 5G, low-earth satellite and other emerging agile network technologies. “Unfortunately, with all that has been accomplished financially, our 2023 budget will not show the break-even results we were striving for,” DeJoy said Thursday. But the sudden reversal of its financial situation is only through short-term relief from a major postal reform bill President Joe Biden signed into law in April.Īs for long-term resolutions to its finances, Postmaster General Louis DeJoy told the USPS Board of Governors the agency isn’t expected to reach a financial “break-even” point in fiscal 2023, as expected in the agency’s 10-year reform plan. USPS reported a $56 billion net income for fiscal 2022, ending a 15-year streak of annual net losses. But the sudden reversal of its financial situation is only through short-term relief from a major postal reform bill President Joe Biden signed. The Postal Service is falling behind on a plan to reverse its long-term financial losses, citing record inflation and what it calls unsustainable contributions to a federal retirement fund that covers some postal retirees.
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