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Official: US Postal Service is not expected to run short of cash in the next year

?The U.S. Postal Regulatory Commission informed?lawmakers on Thursday that it did not believe that the financially troubled Postal Service would run out of money next year. However, it has significant issues to address.

Robert Taub is the vice chair of the Postal Service oversight commission. He told a U.S. House Subcommittee recent actions taken to provide financial relief had extended the period before USPS "reported its insolvency". This would be by several more years if the Postal Service made key decisions regarding its expenditures.

We as a nation must act, given the Postal Service’s dire financial condition. "I don't believe we can just leave it to the Postal Service," said?Taub in his testimony.

USPS Postmaster David Steiner warned that the USPS may run out of money as soon as February.

Taub said that the USPS reform plan adopted six years earlier has not stopped ongoing losses, and has "consistently slow mail delivery throughout the United States, especially in rural areas."

The question that needs to be answered is whether USPS will continue to deliver mail to 170 millions addresses six days per week at a cost of $3.4 billion yearly.

USPS reported net losses in the amount of $120 billion since 2007. First-class mail, the agency's most profitable product, fell sharply as the shift from traditional to digital communication occurred, even though the agency still had to maintain "costly" nationwide delivery operations.

USPS announced last week that it would suspend non-essential expenditures on?travel?,?office supplies? and consultants. Steiner explained to officers that the move was made "to protect our core operations and continue meeting all essential obligations."

The Postal Service announced last month that it would suspend temporarily?employer contributions to a federal pension plan and raise the cost of first-class stamps by 82 cents per stamp, starting July 12.

By suspending employee pension contributions, you can save $2.5 billion by September 30, and up to $15 billion in 2030.

Steiner stated in March that the Postal Service would be hiring restructuring advisors to address its financial problems and had asked Congress for further reforms.

(source: Reuters)