Although the postal service has cut costs to the tune of $15 billion a year, they are now forced to end Saturday delivery of mails – a move expected to save another $2 billion a year.
Why? Because at the end of 2006 under the Bush Administration, a Republican controlled Congress wanted to privatize the agency and did what they thought would cripple the USPS. They forced the Postal Service to pre-pay $55 billion into a retirement fund, a mandate that takes $5.5 billion a year for a away from the agency for a period of 10 years.
So to stay above water, your Saturday mail delivery will be cut in August.
The announcement is expected on Wednesday, but the decision was explained in an official statement from post master general Patrick Donohoe;
“The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation. The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail.”
Although the postal service receives no funding from the Federal government, they are bound by congressional rules.
