The Postal Service is struggling, but not because of the mail

An opinion piece in The Washington Post The Postal Service is struggling, but not because of the mail.

"One prevalent myth is that delivering the mail to 150 million addresses six days a week, as more people turn to the Internet, puts taxpayers on the hook for multibillion-dollar losses. In fact, boosted by record worker productivity, the Postal Service is admirably weathering the worst economy in 80 years. In fiscal 2007 through 2010, if you subtract the related costs from the earned revenue from mail delivery (the Postal Service hasn’t received taxpayer money in 30 years), it had an operating profit of $611 million.

There is indeed red ink, but the reasons are unrelated to the mail. In 2006 Congress required that, within the next decade, the Postal Service pre-fund future retiree health benefits for the next 75 years — a burden no other agency or company faces. That accounts for 85 percent of all of the agency’s red ink since — and more than 90 percent of the $6.46 billion shortfall from the first half of fiscal 2012. Before pre-funding began in 2007, the Postal Service had annual profits in the low billions. It’s this unaffordable payment that the Postal Service is ‘simply not capable of making’ next month, a spokesman said this week."