{"id":126115,"date":"2024-11-15T11:52:45","date_gmt":"2024-11-15T04:52:45","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=126115"},"modified":"2024-11-15T11:52:45","modified_gmt":"2024-11-15T04:52:45","slug":"usps-sees-9-5b-net-loss-in-fy-2024-does-not-expect-to-hit-break-even-goal-next-year","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=126115","title":{"rendered":"USPS sees $9.5B net loss in FY 2024, does not expect to hit \u2018break even\u2019 goal next year"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"Entry-content\">\n<p class=\"MsoNormal\"><span style=\"font-size: 1.25rem;\">The Postal Service is reporting a deeper financial loss than it\u2019s seen in recent years, and is calling on Congress and the incoming Trump administration to address rising costs that are beyond its control. <\/span><span style=\"font-size: 1.25rem;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\" style=\"tab-stops: 608.65pt;\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS reported a $9.5 billion net loss for fiscal 2024, despite year-over-year growth in revenue and a reduction in its controllable expenses. The agency saw a $6.5 billion loss in FY 2023. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS officials said 80% of the agency\u2019s losses come from fixed costs \u2014 including pension contributions for its retirees and workers\u2019 compensation claims for employees injured on the job. <span style=\"mso-spacerun: yes;\">\u00a0<\/span><\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">The agency will not seek to raise mail prices in January 2025, but it <a href=\"https:\/\/federalnewsnetwork.com\/agency-oversight\/2024\/09\/usps-mail-revenue-still-critical-to-bottom-line-as-agency-offers-reprieve-from-price-hikes\/\">plans to keep setting higher prices<\/a> each July and January after that, through the end of 2027. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS projections show the agency will end FY 2025 with a $6.9 billion net loss for FY 2025, and is falling short of its \u201cbreak-even\u201d goal under a 10-year reform plan. <\/span><\/p>\n<p class=\"MsoNormal\">The Postal Service\u2019s growing annual losses have a downstream impact on its career workforce.<\/p>\n<p class=\"MsoNormal\">The leadership of the National Association of Letter Carriers recently <a href=\"https:\/\/federalnewsnetwork.com\/unions\/2024\/10\/some-usps-letter-carriers-rally-for-no-vote-on-unions-tentative-contract\/\">told members<\/a> that USPS\u2019 growing net losses were a factor in negotiations for a three-year tentative labor agreement. Letter carriers will vote on the tentative deal later this month.<\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Postmaster General Louis DeJoy told the USPS Board of Governors that 2024 was a \u201cyear of continued transformation, accomplishment and setback\u201d for the agency that included a mix of \u201csuccessful endeavors and failed ones, attaining goals and falling short.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cWe are trying to accomplish what was presumed not accomplishable \u2014 the fixing of the broken Postal Service business model. We march on,\u201d DeJoy said Thursday.<\/span><\/p>\n<p>To get back on track with its financial goals, USPS is looking to bring in $82.9 billion in revenue next year \u2014 a $2.4 billion increase from 2024. The agency expects nearly all of this revenue growth will come from expanding its package business.<\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS met <a href=\"https:\/\/federalnewsnetwork.com\/agency-oversight\/2024\/05\/26-senators-tell-usps-to-pause-all-changes-to-delivery-network-until-regulators-review\/\">bipartisan pushback<\/a> from Congress this year over its network modernization plans.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">The agency opened its first wave of regional mail processing mega-centers, called Regional Processing and Distribution Centers (RPDCs), but saw <a href=\"https:\/\/federalnewsnetwork.com\/agency-oversight\/2024\/08\/usps-improves-on-time-delivery-in-delay-hotspots-but-faces-year-end-challenges\/\">persistent declines in on-time delivery<\/a> in some locations \u2014 including Atlanta, Houston and Richmond, Virginia.<\/span><\/p>\n<p>USPS delivered about 86% of first-class mail on time in FY 2024, according to its <a href=\"https:\/\/spm.usps.com\/#\/main\">service performance dashboard<\/a> \u2014 down from 91% the year prior.<\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS has agreed to put some of its network modernization plans on hold at least until January 2025.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">DeJoy said growth and cost-cutting are at the heart of the agency\u2019s 10-year Delivering for America plan, but added the strategy \u201cis not about contraction or just cost reduction.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cThat approach would not support our long-term goal of viability. It has been tried and it has failed,\u201d he said. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">DeJoy acknowledged USPS has fallen short on some of its goals, but he said the 10-year plan \u201cis the only comprehensive plan\u201d to save the agency from financial collapse. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cI have complete confidence that in 2025, we\u2019ll accomplish more meaningful progress as we accelerate our execution and refinement of the Delivering for America strategies,\u201d he added. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Next year, USPS expects to implement its plan to save billions of dollars annually by getting mail and packages to their destination in fewer trips between mail processing plants and post offices.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Under its <a href=\"https:\/\/federalnewsnetwork.com\/agency-oversight\/2024\/08\/usps-previews-next-step-in-network-modernization-plan-faster-delivery-3b-cut-in-annual-costs\/\">Regional Transportation Optimization (RTO) initiative<\/a>, USPS will reduce trips to collect mail and packages outside a 50-mile radius of its largest regional mail processing plants.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">In some cases, mail and packages in more rural areas would remain in transit for about a day longer before reaching their final destination. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cWe will reform legacy business rules that are no longer tailored to today\u2019s volume and product mix, and that force USPS to make costly, expensive and inefficient actions, such as executing a trip in the morning and another trip in the evening, every day to every office, no matter how far that office is from the processing plant, or how much mail there is to pick up,\u201d DeJoy said. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS told its regulator that the plan is a \u201cnet positive\u201d for its customers. It expects about 14% of first-class mail will move faster under this plan, but 11% of mail will move slower. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">The agency expects 75% of all first-class mail volume will be unaffected by these changes. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">DeJoy said this effort could save USPS up to $3.7 billion annually, and is essential to USPS to remaining \u201cfinancially self-sufficient while continuing to deliver to every address across the nation.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cI will emphasize this is not an initiative to slow down the mail for rural America, close post offices or pursue draconian cost cuts,\u201d DeJoy said. \u201cThis is a rationalized and methodical initiative to save the Postal Service for generations to come.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS is still finalizing its election mail performance metrics, but DeJoy said preliminary data shows the agency delivered more than 98% of ballots from voters to election boards within its one-to-five-day delivery standard \u2014 and that ballots were delivered, on average, in less than a day. USPS, he added, delivered about 99% of ballots within seven days. <span style=\"mso-spacerun: yes;\">\u00a0<\/span><\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">While USPS deploys \u201cextraordinary measures\u201d each election to prioritize the delivery of ballots ahead of regular mail, DeJoy said the agency\u2019s performance demonstrates it is ready to handle a surge of mail and packages during this year\u2019s peak holiday season. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cJust as with your vote, you can count on us to deliver holiday packages and mail throughout the nation,\u201d DeJoy said. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Members of the USPS Board of Governors remain committed to the 10-year reform plan. In a recent closed-door session, the board approved a \u201c<a href=\"https:\/\/federalnewsnetwork.com\/agency-oversight\/2024\/10\/usps-seeks-higher-borrowing-limit-from-treasury-in-10-year-plan-update\/\">Delivering for America 2.0\u201d strategic plan<\/a> for the next five years. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS under the strategic plan is asking Congress to raise its $15 billion borrowing limit with the Treasury Department to keep making infrastructure upgrades. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">It\u2019s also calling on the Office of Personnel Management to reassess what it pays into the Civil Service Retirement System, the pension system for federal employees who began government service before 1987.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Retiring board member Anton Hajjar, a former general counsel for the American Postal Workers Union, said that when he was nominated by President Joe Biden to serve on the board in 2020, \u201call the talk was that it was a priority to ouster Postmaster General Louis DeJoy.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cI was won over to his leadership, relentless hard work and vision of the changes that were necessary to save the Postal Service,\u201d Hajjar said. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">USPS performance, he added, \u201chas sometimes been spotty as the network is being transformed,\u201d and urged USPS to conduct community tours in areas impacted by its network modernization efforts. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cPeople trust and cherish the Postal Service,\u201d Hajjar said. \u201cI\u2019m convinced from my own experience talking to people that they are forgiving about the problems they have encountered when they get honest answers about why they are experiencing problems and what the Postal Service is doing to try and address them.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cI have heard lots of criticism with the DFA in my time on the board, but I have yet to hear a feasible alternative,\u201d he added. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Board member Dan Tangherlini, a former head of the General Services, said USPS is not realizing its break-even goals, \u201cbut we are assured by the management team that we are in transition in the right direction.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cThere are many hopeful signs to suggest that progress, in fact, is being made,\u201d Tangherlini said.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\"> Transportation costs, <span style=\"mso-spacerun: yes;\">\u00a0<\/span>he added are lower, and that USPS efforts to insource previously contracted logistics operations and restructure its facilities \u201care showing positive results.\u201d <span style=\"mso-spacerun: yes;\">\u00a0<\/span><\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Ron Stroman, a member of the board and former deputy postmaster general, said USPS, in addition to its financial woes, remains far off from its goals of 95% on-time mail delivery. He urged USPS to \u201ccontinue to make improvements and progress to improve service to the American people.\u201d <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">\u201cIt would certainly appear that the Postal Service is headed to some challenging times over the next few years,\u201d Stroman said. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Board Chairman Roman Martinez IV is also nearing the end of his term. His term expires on Dec. 8, but he can continue to serve on the board for an additional holdover year, or until the Senate confirms his successor. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">The Senate Homeland Security and Governmental Affairs Committee held a hearing Thursday for four of President Joe Biden\u2019s picks to serve on the board. In addition to filling Hajjar and Martinez\u2019s seats, the board has two vacancies. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"mso-bidi-font-size: 14.0pt; line-height: 107%; mso-bidi-font-family: Arial;\">Amber McReynolds, the current head of the board\u2019s election mail committee, will serve as board chairwoman starting next month. Derek Kan, a former deputy director of the Office of Management and Budget and Transportation Department undersecretary, will serve as the board\u2019s vice chairman. <\/span><\/p>\n<p class=\"article-copyright\"><em>Copyright<br \/>\n                            \u00a9\u00a02024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.<\/em>\n                    <\/p>\n<\/p><\/div>\n<p><script async defer crossorigin=\"anonymous\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&#038;version=v8.0&#038;appId=228478281369433&#038;autoLogAppEvents=1\" nonce=\"n09D3zOr\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/federalnewsnetwork.com\/management\/2024\/11\/usps-sees-9-5b-net-loss-in-fy-2024-does-not-expect-to-hit-break-even-goal-next-year\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Postal Service is reporting a deeper financial loss than it\u2019s seen in recent years, and is calling on Congress and the incoming Trump administration to address rising costs that &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=126115\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-126115","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/126115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126115"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/126115\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}