Complete Story
01/08/2025
The USPS: A $9.5 Billion Deficit in 2024
Source: Jim Hamilton, Green Harbor Publications, December 16, 2024. Content provided by Canon Solutions America.
You may have seen the recent news that the United States Postal Service (USPS) had a deficit of $9.5 billion during its recently completed 2024 fiscal year. This is after Postmaster General Louis DeJoy suggested four years ago that his “Delivering for America” plan had a chance of getting the USPS to a breakeven point by now. As it turns out, though, this is not all DeJoy’s fault. In a very true sense, the USPS has its hands tied. The United States government does not see the postal service as a “service” provided to taxpayers—it wants the USPS to be self-funding, but in several important legislative ways, the government has made it very difficult for the USPS to break even.
Good News and Bad News
The good news from the latest USPS fiscal announcement was that the USPS increased its operating revenues by $1.4 billion, largely due to gains in package shipping. Even so, it still experienced a $9.5 billion net loss in its 2024 fiscal year. Of this $9.5 billion, the USPS considers only $1.8 billion of that deficit to be under its control. According to USPS management, the remaining $7.7 billion is “uncontrollable.” In other words, these losses are dependent on factors that are outside of USPS management's control. These losses are attributed to the amortization of unfunded retiree pension liabilities and non-cash workers' compensation adjustments. These are losses that, according to the USPS, can only be improved by legislative action.
Controlling the Uncontrollable
At the public meeting about its 2024 fiscal results, outgoing Chairman of the Postal Service Board of Governors Roman Martinez IV made the following points about uncontrollable costs:
“Simply put, the key premise of the [Delivering for America] plan is that the Postal Service cannot achieve its dual mandate mission with its historical business model and operating structure. To achieve its mission, the Postal Service needs to grow its package business to generate sufficient cash flow to cover operating costs, capital investments (both new and deferred), and other obligations. To meet that objective and to improve service overall, the Postal Service must restructure its nationwide network into a cost-effective, integrated mail and package logistics system and do so while handling almost 400 million pieces of mail and packages every day.”
New Lawsuit Highlights Concerns About AI Notetakers
A new lawsuit just filed against Otter.ai underscores the legal and compliance risks companies face when using AI notetakers – and serves as a good reminder to deploy best practices to reduce your risks.
Read MoreAvoid the Hidden Risks of Misclassifying Employees
When businesses need workers, the question of classification arises: Should these workers be treated as W-2 employees or independent contractors? Misclassifying employees as independent contractors can have significant financial and legal consequences.
Read MoreCPI Change Foretells Small USPS Price Increase
Unless Postmaster General David Steiner reverses his predecessor's policy of semi-annual postage price increases, the Postal Service's stated schedule calls for another to be effective in January 2026.
Read MoreAI Hallucinations Could Cause Nightmares for Your Business
Remember, “artificial” intelligence simulates knowledge but doesn’t embody it. And when GenAI fills in the blanks with fiction, it does so with the tone and confidence of truth. Learn the 10 Steps You Can Take to Safeguard Your GenAI Use.
Read MoreHiring Right Now: How to Make the Most of an Employer’s Market
If your company is hiring for full-time, flex-to-hire, or flexible (temporary) workers in this climate, here’s what you need to know.
Read MoreYour Digital Story
Everyone has a story to tell. But, we also have stories told about us...stories that affect our sales. In this week's Short Attention Span Sales Tip, Bill Farquharson challenges you to take charge of your online persona so your customers see you in the best possible light.
Read More