US Postal Service struggles with falling revenues
by
Rachel Lake
Story Created:
Apr 7, 2011 at 6:17 PM CDT
Story Updated:
Apr 7, 2011 at 6:17 PM CDT
The U.S. Postal Service is facing its own money crisis. As internet use skyrockets, post office revenues have plummeted. So is the budget crisis on capitol hill making things worse?
No, even though the US Postal Service is a federal agency, it's not funded by taxpayer dollars. It's funded by its own sales. So it won't shut down if Democrats and Republicans can't reach a compromise.
But that's not to say, the Postal Service doesn't have budget problems of its own. Last year, it lost $8.5 billion.
It hopes to save $500 million in the next two years by closing or consolidating 2,000 offices nationwide.
Right now, no offices are slated to close in the state. But the postal service may look at consolidating some rural offices. It is something officials hope won't happen.
"Small town post office is pretty much the hub of the community. It's where everybody goes in the morning to exchange news and talk about the events of the day. It's a daily event," said William Krejci, National League of Postmasters.
"So by having a reduction in the number of post offices or individuals working in those post offices we potentially could see a decrease in revenues coming into the state where people buying items on main street," said Lt. Governor Rick Sheehy.
Officials said while people are mailing fewer parcels, the number of delivery points has increased along with advertisements.
In 2009, the U.S. Postal Service proposed cutting its Saturday delivery service. It is a move that would save $3 billion annually, but must first be approved by Congress-which hasn't happened yet.
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