WASHINGTON −The U.S. Postal Service’s 10-year plan to stop operating at a loss isn’t going well. And, if they can’t get back on track, that could threaten its ability to deliver the mail and pay its retirees’ benefits.
According to a federal watchdog group, expenses have grown faster than revenues for years partly because of the drop in first-class mail, it’s most profitable product. USPS also faces competition for package delivery from private companies while key costs, such as employee compensation, have continued to rise.
Any gains made since the plan was announced two years ago have been offset by increased costs that postal officials say are mostly due to inflation, according to an assessment published this week by the U.S. Government Accountability Office.
The agency recommended policy changes to improve implementation.
“The Postal Service’s strategic plan has the potential to help its operations and revenues,” GAO wrote. “But how well the plan is implemented will affect how much help it provides.”
In its response to the analysis, the Postal Service said the GAO didn’t acknowledge “that there are many valid ways to approach strategic planning and project management.”
USPS has also said it’s made “significant progress in returning the organization to financial stability” and has demonstrated that “the path forward is achievable.”
The Postal Service hasn’t collected enough revenues to cover its expenses and debt for more than 15 years.
The volume of first-class mail is expected to continue to decline as people pay more bills electronically and communicate online.
Published in March 2021, the Postal Service’s strategic plan aims to at least break even by 2031 while also improving service.
Among the plan’s more than 120 components, major ones include closing some mail facilities and replacing aging delivery vehicles which are driving up maintenance costs.
USPS has also given itself more time to deliver the mail. The delivery…
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