United States Postal Service Could Be Insolvent By Next Summer

The U.S. Postal Service (USPS) is nearly insolvent thanks to a $9.2 billion deficit and now the agency could be forced to shut down completely by Summer 2012 unless the U.S. Government steps in to save the mail delivery service.

USPS spokesman Dave Partenheimer told ABCNews.com Monday:

“Right now we think we can make it through until next summer most likely but then some hard choices will have to be made,” while adding, “That’s why it’s such an urgent crisis.”

By September 30 the postal service will have reached their borrowing limit of $15 billion and in lieu of that event they are asking Congress to restructure health care and retirement systems for postal workers to make them more independent from the federal government, a move that is expected to save the agency billions.

According to Partenheimer such a restructuring would allow the company to operate “more like a business.”

The agency is also attempting to find new revenue-boosting measures, including the ability to deliver wine and beer, placing commercial advertisements on their postal trucks and offices and even offering more hand-delivery services.

Among the agencies biggest plan would be dropping one day of service from their schedule, a move that could save the organization upwards of $3.1 billion annually.

In the last four years the organization has cut 110,000 jobs, closed numerous postal offices and restructured as much as possible to cut more than $12 billion from their annual operating expenses.

Would you be okay with USPS going to a five day delivery schedule if it saved the postal system?