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U.S. Postal Service: Restructuring Urgently Needed to Achieve Financial Viability: Congressional Testimony
Phillip Herr (au)
The U.S. Postal Serviceís (USPS) financial condition has worsened since Jan. 2009, with the recession and changing mail use causing dramatic declines in mail volume and revenues despite postal rate increases. USPS expects these declines to lead to losses and cash shortfalls even if ambitious cost-cutting is achieved. USPSís business model has relied on growth in mail volume to cover costs, but USPS has not been able to cut costs fast enough to offset the accelerated decline in mail volume and revenue. This testimony: (1) updates USPSís financial condition and outlook and explains the decision to place USPSís financial condition on the High-Risk List; and (2) presents options and actions that the USPS can take. Charts and tables.
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