Postal Cuts Aren't Enough

The post office continues to lose money at a rapid pace, and risks default. Even though the postal service has cut staff, closed offices and will be consolidating other facilities, it isn't enough. Postmaster General Patrick Donohoe says it will have a cash shortfall, and reach its statutory borrowing limit, by the end of the fiscal year. That means it could be forced to default on some of its financial obligations to the federal government. Without the requirement for advance health care payments, the USPS says it would have had a net profit of $226-million dollars for the quarter.