With all the changes coming out of the agency, David Marroni, a postal service expert at the Government Accountability Office, blames the outdated business model.
“The core issue here is the existing USPS business model, where it’s supposed to be financially self-supporting based on providing postal services, just doesn’t work today,” Marroni said.
But with Steiner admitting the agency is strapped for cash and calling on lawmakers to consider drastic changes to save money, more money is set to come out of American voters’ pockets under the proposed changes.
Shortly after Easter, USPS suggested raising stamp prices by 5%, saying it would temporarily suspend some payments to a government retirement fund. The agency also called on lawmakers to make room to permit them to dial back on delivery days and give longer consideration to revenue-losing routes.
“Americans in every part of this country rely upon and really deserve prompt, reliable and efficient mail services,” Mfume said.
“We cannot lose the postal service as we know it.”
In addition to stamps, the Postal Regulatory Commission approved a temporary 8% surcharge on packages amid rising fuel and transportation costs. While the increase leaves room for stiff competition from other delivery services such as FedEx, UPS, and Amazon, Americans rely heavily on the Postal Service for important mail delivery, including prescription drugs and election ballots.
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Source: Black Enterprise
