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What Do Cuts at the Post Office Mean to You?

Would you pay $22 to $60 just to mail a letter downtown? The problems at the postal service may not be what you think.

 

As the second-largest employer in the United States (after Walmart) and the largest employer of union employees, the United States Postal Service is, to put it lightly, important.

As an affordable means for Americans to send and receive correspondence and packages, often next-day, the USPS is important.

As one of few government agencies deemed important enough by our founding fathers to spell out in the Constitution our Congress's "power to lay and collect taxes" for our postal infrastructure, the USPS is important. 

As the only delivery service required to provide coverage to all corners of the United States, regardless of how remote or sparsely populated, the USPS is important.

The USPS has been picked on lately. Some politicians suggest that its employee benefits package is causing the agency to go broke. Some assume the USPS is poorly run or even that it wastes taxpayer money.

A taxpayer drain it is not; the USPS is fully funded by postage. Congress has authority over the USPS, but our postal service hasn't been taxpayer funded since 1970 (despite the Constitution's instructions). 

While email, online bill pay and the recession most certainly have cut into its revenue, the postal service actually operates on a healthy business model; its woes are largely exaggerated and artificial. In fact, if the Postal Accountability and Enhancement Act (PAEA) of 2006 hadn't been signed into law by George W. Bush, the USPS would enjoy a $1.5 billion surplus instead of its massive deficit. 

This devastating act requires the USPS to pre-fund, within 10 years, 75 years' worth of future health care benefit payments for retirees. The PAEA puts a burden on the USPS required of no other government agency, costing the agency $5.4 billion a year since 2006. The USPS has also overfunded a separate retirement account by about $6.9 billion.

Private Shipping Costs More

The USPS's financial woes have made the news over the past few months with talk of eliminating Saturday delivery, cutting jobs, and closing half of its 500 processing centers (including nine in Illinois) and many underperforming post offices. So far, none of these cuts are in the south suburbs, but could still affect us. Any or all of these actions would certainly slow First Class delivery, inconvenience millions of customers and perhaps compel many of us to turn to competitors, such as UPS and FedEx, for shipping.

UPS has a nifty time-and-cost calculator. As an exercise, I looked for some estimates for letter delivery, the same size letter that each of us can send with a 44-cent stamp. I entered a random mid-week, non-holiday delivery from Chicago Heights to downtown Chicago. The range, fastest to slowest: $60.36 to $22.69. For fun, I thought I'd check New Lenox to Davis, CA. The range: $74.33 to $26.62.

A 44-cent First Class stamp doesn't guarantee next-day delivery, but they delivered a Christmas card to Davis, Calif. in three days for $26.18 less than UPS would have charged.

The loss of First Class mail (or the postal service altogether) would create huge inconveniences or expenses for people who rely on the postal service to deliver bills and prescriptions. The same goes for small businesses that use the postal service instead of internal or private parcel services and people who send mail to Canada, including people who work in one country and live in another. Not everthing can be paid online—yet. (Postage on a recent letter to Edmonton set me back 85 cents. The UPS quote was $39.79). 

The proposed postal service cuts have been pushed back until mid May. Hopefully a new plan will be in the works before then, preferably to remove or revise the PAEA. Cuts to the USPS would cause problems our economy can ill afford, hurting postal employees, businesses, regular citizens and the unemployment rate.

Related Topics: Postal Accountability and Enhancement Act and Usps
How do you feel about the proposed cuts to the USPS? Tell us in the comments.

Angus Macgyver

7:47 am on Tuesday, January 3, 2012

Denise:
You are correct; the USPS provides am important and cost effective service to the United States. What struck me in your opinion is what you said and didn't say. To suggest that the current state of affairs for the USPS is George Bush's fault is silly. Let me get this straight, the USPS, more or less, has been around since the inception of our Nation, but its George Bush's fault the USPS is having revenue and budgetary issues. Your opinion fails to mention the obvious need for the USPS to modify its business model and become more efficient and by doing so capture some of UPS and FedEx's market share. Let's not talk about what used to be, but rather how much better the USPS can become.

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Homewood Jim

9:25 am on Tuesday, January 3, 2012

Angus, you have to realize that the author is a left-wing liberal who is still on the 'Blame-Bush' bandwagon. She failed to point out that a Democrat-controlled Congress passed the law the Bush signed. But it is easier to blame Bush than assign responsibility to the actual (Democrat) lawmakers. The problem with the USPS is volume - very large fixed costs, but declining volume/revenues: thank you Internet. We taxpayers will continue to subsidize the USPS, like it or not.

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Tim F

11:24 am on Tuesday, January 3, 2012

I blame Bush for the Cuban missle crisis

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Denise Du Vernay

12:39 pm on Tuesday, January 3, 2012

Angus,
I apologize if it seemed I was being unfair to George W. Bush. I simply meant to give some history about the PAEA, which meant noting that the PAEA was signed into law in 2006. George W. Bush was President in 2006.
Denise Du Vernay

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Denise Du Vernay

12:44 pm on Tuesday, January 3, 2012

Homewood Jim,
The USPS hasn't been taxpayer funded since 1970, when the Postal Reorganization Act went into effect. The USPS functions on revenue from postage.
-Denise Du Vernay

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Grunty

1:28 pm on Tuesday, January 3, 2012

@Homewood Jim

Congress passes laws, then the president signs them and enforces them. After the law hits the presidents desk, unless it is veto'd or congress passes another law/act/whatever to repeal that law, it does not go back to congress to "pass".

Geoff

9:15 am on Tuesday, January 3, 2012

Efficiency is needed alright! Almost everything about the USPS is outdated except their mail distribution centers which are now under utilised since the mail volume has gone down. The Homewood Branch and mail carriers we have in our neighborhood in Homewood are terrible! Several times a week, our neighbors get our mail and lots of times important mail is late to our house. Some weeks we go three days without mail and then we get a bundle.

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Rebecca Wharrie

10:07 am on Tuesday, January 3, 2012

In my opinion, the USPS is a failing "business" because they made enormous mistakes. They had terrible customer service, a horrible track record and a bad public image. Capitalism took over and provided affordable options while the USPS stayed the same, believing in their infallibility. Why are they or anyone else surprised at the cutbacks?
Furthermore, if this was a political issue (which in my opinion, it is not), Dems had 3 years to fix it and didn't.

This was business and the best businesses rose to the top.

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Russ

10:53 am on Tuesday, January 3, 2012

Interesting Homewood,
A democratic congress ,hmmmm lets see.The democratic congress that you are speaking of was elected in Nov. of 2006 but ,as I am SURE you know , did not come into power until January of 2007. the act (PAEA) was passed by a republican congress and signed by W ... On 12/20/2006
http://www.prc.gov/PRC-DOCS/UploadedDocuments/PL109-435PAEA.pdf

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Homewood Jim

11:00 am on Tuesday, January 3, 2012

yep, you are correct. My first mistake this year! too much eggnog for this old noggin!

Russ

11:00 am on Tuesday, January 3, 2012

So I guess it isn't so "SILLY" to blame W and the republicans for trying to force the Post Office out of business with an act that requires full pensions for 75 years into the future.This is an obligation that no other company public or private is held to.
Denise Kudos for a great article.

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Russ

11:17 am on Tuesday, January 3, 2012

I know it is your opinion but, Rebecca what don't you like about sending a letter or document across this country to the smallest town for 44 cents?I can only judge the P.O. by my experience .Deliveries are on time ,I can send letters right from my own mailbox.I have received baby chicks unharmed via usps by people that are courteous and professional.
The biggest threat that I see fom the Post Office to people on the right is that it's members are represented by a union. We all know how they hate unions.Just watch how they will respond in further comments.

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Denise Du Vernay

1:13 pm on Tuesday, January 3, 2012

BABY CHICKS? In the mail? Excuse me for shouting, but wow! Do the private companies deliver live animals, do you know?

It does seem that there is something to the union issue, I hate to say.

Pat F

11:35 am on Tuesday, January 3, 2012

I'm a retired/disabled truck driver and delivered to the post offices on and off for 37 years.. If you saw what goes on in the post office you would have no question as to why they're broke. A majority of the centers are so overstaffed it's sad.. Workers standing doing little to Nothing is my complaint. Supervisors who ignored my comments for years as they went back to their phone calls or conversations with other non working employees. These distribution centers I speak of are not the neighborhood post offices. These centers claim they have laid off because of the switch to email, but they could double that and still be overstaffed. I agree they should push forward and compete with Fedex and UPS.. They will have to raise rates but they'll still be cheaper than their competitors if they do it right. The system needed is mostly there, you just need the management and workers who are willing to work! The benefits here should be more in line with the private sector.. The people who won't adjust can easily be replaced as a good portion of the US is unemployed!! I also believe this is a service we need in our lives, but if the Postal workers won't change their ways, it will never survive this changing economy!!

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Russ

1:11 pm on Tuesday, January 3, 2012

I am pretty sure there are problems with the post office that need to be addressed.
However,the USPS would be in the black if it wasn't for the PAEA act mentioned in Denise's article.

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Rebecca Wharrie

1:14 pm on Tuesday, January 3, 2012

I re-read my comments and I never stated anything about disliking sending a letter for 44 cents.
The issue can't be about unions; postal workers are government employees. Private sector workers are losing benefits, have marginal heath care benefits and little chance at affording retirement. Because of the new (bad) economic situation, it's hard to feel empathy for the government workers who are complaining about their benefits becoming less beneficial while providing rude, subpar work. I've found the USPS to be unpredictable and found that packages arrive damaged and mangled, often by rude employees, but that's in Frankfort.
I should mention that I prefer to send letters and documents by email and fax. I can't remember the last time I mailed anything besides packages.
I do think this is a service the government should provide. I just believe that employees in the government sector should have similar benefits and high work expectations like the private sector. In the private sector, we are expected to work longer hours, provide excellent service and customer satisfaction, our pay has been cut as have our benefits and the cost of living has skyrocketed. In addition, our jobs arent guaranteed just as our Social Security isnt guaranteed. They should live the way we all do; work our backsides off without any guarantees of anything. If that were the case for congress, government would run a lot more efficiently. That's just my opinion.

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Russ

1:21 pm on Tuesday, January 3, 2012

Funny Jim,
I have the eggnog problem too.LoL

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Russ

1:39 pm on Tuesday, January 3, 2012

Rebecca,
The point of this article is that that particular act(PAEA) is putting an unfair burden on the Post Office that is going to cause a huge decrease in service to postal customers across the country. As far as deliveries go ,I have had damaged packages from fedex and ups.I had to send a motor back 3 times because of damage by the other shipping companies.So bad things can happen.
I said what don't you like about the 44 cent letter ,not in reference to anything you mentioned in your comment.
I am sorry that your wages and benefits aren't what other people get,but why should other people lower there standards to match your employment woes.Sounds like a race to the bottom to me.I don't know anyone that has a guaranteed job.
I do know that social security is good thru 2036 and can be improved by raising the income cap from 106,000 dollars ,but that is another argument that i have seen at different times across Patch not related to this subject.

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Russ

1:49 pm on Tuesday, January 3, 2012

Denise,
I am not sure if others do,but that is how I know the chicks have arrived for years around here.All 130 chicks in the last delivery were in good health.I think that says something about a delivery service.

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Denise Du Vernay

2:35 pm on Tuesday, January 3, 2012

I just checked UPS out of curiosity, and they will NOT ship any birds. There is a list of accepted animals (amphibians, crustaceans, beneficial insects, mollusks, some reptiles, and worms). They may ship service animals overnight. FedEx doesn't seem to have an outlined policy but handles queries case-by-case.

What would your Plan B have been if you couldn't receive chicks from USPS?

http://www.ups.com/content/us/en/resources/ship/packaging/guidelines/animals.html?srch_pos=1&srch_phr=animals

Russ

1:50 pm on Tuesday, January 3, 2012

@ Rebecca Sorry,one last point.I was in a private sector job for 32+ years with good wages and benesits and OMG I was in the Union for all of those years.Just saying.

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Russ

3:41 pm on Tuesday, January 3, 2012

Didn't have a choice of providers when the birds were ordered.I went on the(Murray McMurray Hatcheries) website and they said USPS or UPS ground but when I spoke with an agent she said Priority mail to the post office only.If there wasn't a service I guess we would have to take a ride to Iowa.So I am grateful that USPS does deliver.

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Pat F

3:51 pm on Tuesday, January 3, 2012

I also was in a union job when I had to have 3 back surgeries..If it wasn't for the union We would have lost everything..I can tell you from personal experience, the people who have the most trouble accepting union workers making a decent wage are the professional people.. A lot (not all) believe if you don't have the education you're not entitled to a decent wage! They're especially upset now because their retirements have dwindled substantially with the failing economy and their investments are in the tank..I believe anybody, union or not, is entitled to a job with good wages and benefits as long as you're willing to do the job as required by the company..From my 30+ years of experience delivering to the postal system, I'd say you would be lucky to find even 50% of the workers performing up to standards!!

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Russ

4:02 pm on Tuesday, January 3, 2012

Pat,I can't disagree with anything you said.I don't have the experience that you had with the postal workers.I hope it isn't that way everywhere.That being said ,if it wasn't for this rotten (PAEA) piece of legislation that was passed in 2006 the Post Office would be in the black and not have to worry about laying off workers or closing rural post offices

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Juvenal

4:42 pm on Tuesday, January 3, 2012

I know the Patch is a new model of Journalism but is there any distinction between news and opinion, or does anything go? The same people write the news and the opinion, right?

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OakLawnGuy

6:23 pm on Tuesday, January 3, 2012

Juv, it reads "Opinion", right before the headline.

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Denise Du Vernay

6:51 pm on Tuesday, January 3, 2012

While it is researched (with sources linked), this story is categorized as Opinion. This is not new; opinion pages and editorials have been common in American newspapers since the mid 1800s.

mr lahey

6:37 pm on Tuesday, January 3, 2012

so true juvenal
just ask that wolf character
the same people that quote bloggers
think that wikopedia is the gospel
both groups are unreliable and mostly misinformed
there are no more "journalists" as in research and fact
only news readers on tv and internet wannabees
liberal biased gone wild in all media
watch msnbc..they laugh at their interview subjects like silly highschoolers
just look at how quotes are used in print and online
most writers haven't a clue what that means or simple rules of printed english
use the patch for what it is
a place to vote for best pizza
or read about the new mayor's great accomplishments
wait ..what are they?
everyone has an agenda

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Darnell

7:18 pm on Tuesday, January 3, 2012

Raise bulk mail rates 4 fold. Where are the bulk mailers going to go? UPS, FedEx, DHL? None have the means to deliver door to door day to day. Oh,,let's not forget,, all mail finds it's way around the country in the belly of a commercial jet! So while you are flying to your destination, the mail for that city is cruising in the cargo hold with you. Renegotiate the rates with the airlines. I'm sure the USPS is overpaying the airlines! This will solve the USPS's financial woes!

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Blackhawks Fan

7:20 pm on Tuesday, January 3, 2012

Mr. Lahey, you may want to get a grasp on the English language and at least try to use proper punctuation.

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Russ

10:21 pm on Tuesday, January 3, 2012

mr lahey,
Nice try.Standard Operating Procedure,for the right wing politicians, Fox networks and pundits to accuse the corporate owned media as being liberal.Especially when an honest or truthful point is made.

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Carol Nita

3:29 am on Wednesday, January 4, 2012

You can moan about our post office all you want. I use to also. But When I send a package to Italy, express mind you, it takes over a month to get there. If a package from Italy is sent om me, I get it in a week. You think our postal service is bad? How would you like to live in Italy?

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MrsR

4:10 pm on Wednesday, January 4, 2012

I think it is more than unprofessional for the reporter, Ms. Du Vernay to participate in a conversation without being objective. You wrote an informational story, but then interjected your personal beliefs regarding the "right" and unions, which you "hate to say." You shouldn't say. Regardless if you feel this is an "opinion" story, the story was basically informational. If you wanted to interject information into the conversation to make some clarifications, fine, but stating your own opinions (and it's clear to me that you have), I consider that unprofessional.

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Grunty

4:42 pm on Wednesday, January 4, 2012

Let me understand what your saying MrsR...

People writing an article in the opinion section of a news resource are not allowed to give us their opinion? Is that what your saying?

So what is the opinion section for?

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Denise Du Vernay

4:50 pm on Wednesday, January 4, 2012

Just to clarify, MrsR, I said nothing about the "right."

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Paul Dailing

5:26 pm on Wednesday, January 4, 2012

Hi, MrsR. I don't mean to be the third person to comment on this, but I just wanted to assure you reporters writing opinion pieces has been a mainstay of the news for as long as there's been news. Mike Royko would switch between covering city hall and writing columns about Slats Grobnik. Even Walter Cronkite would later go on to pen a syndicated column. I worked in newspapers for a long time before joining Patch and at each one certain reporters either had weekly columns or we were all encouraged to write columns when we felt we really needed to sound off on certain issues. The rule was that opinion articles were unequivocally labeled opinion articles, as this one was.

Patch prides itself, I think rightly, on being a new way to look at news. But we're also proud of the tradition of American journalism. I think articles like this, where we show that we're just folks who also care about our community and are also affected by the issues, are actually in keeping with that tradition. I hope you agree.

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Ben Feldheim

4:23 pm on Wednesday, January 4, 2012

MrsR, a major aspect of traditional media we are trying to change is the notion that we are not a part of the conversation. There used to be tremendous distance between writers and readers, but not so in this format. No single human being alive long enough to gather a handful of life experience is truly objective. But people can be fair and present different sides of a particular issue or argument. I would say Denise's expression of opinion should show you she is honest, more honest than someone who will try to convince you he or she is truly objective.

Mr. Lahey, you've been an avid commenter for some time. If we offend you so, why do you keep coming back?

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mr lahey

5:27 pm on Wednesday, January 4, 2012

What makes you think I'm offended? I just like to poke the beast sometimes, it's my nature! I've lived in Chicago Heights longer than most contributors here have been alive and am always interested in the town's events and opinions. Rather not see this site turn into silliness and misinformation. As far as the actual topic, why doesn't the Post Office just cancel Saturdays....how bad could that be if it would help?
Full puncuation version, Blackhawk , just for you!

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Ben Feldheim

6:50 pm on Wednesday, January 4, 2012

Poking is fully encouraged here. Though you may consider not falling back on broad generalizations. Anyone can say that. You strike me as someone who can do better.

Russ

5:47 pm on Wednesday, January 4, 2012

Mr. Lahey,big improvement,
except for puncuation lol.

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mr lahey

10:02 pm on Wednesday, January 4, 2012

Mr Lahey's kindergarden teacher's report...."plays well with others"
See i can do it!....it'll be a new Lahey in 0-12!!!

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Eileen Davidson

10:12 pm on Tuesday, January 10, 2012

There is A REASON that only the post office was required to have 75 years of retirement funds into the future. While we can only speculate about the WHY, it is a fact that PAEA was passed under Bush and a Republican Congress. Coincidence that they are the country's largest union? A PUBLIC agency with the right to assemble, that could be changed. One nail in the coffin at a time. It takes a while to destroy unions. On a different note, I wish Rebecca and all citizens would not have to worry about benefits, about working their entire lives to have no security. That one medical bill could wipe out. I think all citizens should have government health insurance. I think all citizens who pay into Social Security should get Social Security. Less things to divide and conquer the middle class. Unions are not popular with some folks. Especially Unions that cover public employees , or worse, public employees that are mostly women, like teachers. Unions are not perfect, but the alternative is worse. Of course everyone should do the job they are getting paid for. But in the real world people are paid because they are related to someone, have political connections, are sleeping with someone know someone, etc. Unions have helped more people enter the middle class than anything else.

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Joan Donahue

8:45 pm on Friday, February 10, 2012

That's right, Eileen. When unions were strong we had a strong middle class. That's one thing about the 50's I'd like to bring back.

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Pat F

9:00 pm on Friday, February 10, 2012

And a Green River with a bag of Chesty potato chips at the corner drugstore's fountain!!

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