White House Proposes Ending Saturday Delivery Over Losing Jobs

USPS Budget Crisis Will Force Drastic Restructuring of System to Avoid Bankruptcy

by Jennifer Case on September 20, 2011

During President Obama’s announcement of his proposal to eliminate $3 trillion from the national debt, he outlined a plan to save the United States Postal Service from a dire financial situation. Rather than lay off thousands of government workers, Obama wants to cease mail delivery on Saturdays.

Obama also plans to allow the Postal Service to delay legally required payments to its pension fund in order to use the $5.5 billion to keep itself from financial collapse. Furthermore, the USPS would also be allowed to raise the price of a first-class stamp by 2 cents.

For many though, the end of Saturday mail would be the greatest change, especially for those who subscribe to mail-in services like Netflix and Gamefly. According to Senator Thomas R. Carper of Delaware, though, while none of the proposed changes will be beneficial to service quality, “The option of doing nothing is not an option.”

Previous plans had called for the Postal Service to lay off as many as 120,000 employees while closing numerous branches throughout the country. The release of funds, however, would allow the USPS to buyout or offer incentives to any employee nearing retirement.

As is to be expected, Republicans in Washington were quick to roundly reject the plans. Chairman of the House Oversight Committee, Rep. Darrell Issa of California said, “The president’s proposal is not what taxpayers or the Postal Service needs. Rather than backing an effort to seek fundamental reform, the accounting gimmicks used in the plan are a thinly veiled attempt to offset continued operating losses with a taxpayer-funded bailout.”

Carper has voiced his support of the proposals, saying, “The president’s proposal would help the Postal Service update its business model to reflect Americans’ changing communications habits and address some of the financial burdens.

Before anything can be implemented, Congress will have to pass the White House’s plan. According to the White House’s budget office, if all the measures meet earn Congressional approval, they could result in $18.6 billion in deficit cuts by 2021.

The United States Postal Service has been on the decline for years. Within the past decade, budgetary problems have resulted in the lay offs of more than 200,000 workers and the need for $12 billion in government loans. Since 2006, the volume of mail has also declined, by 20 percent.

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