(AURN News) — The U.S. Postal Service is warning it could run out of cash in less than a year, which could leave it unable to deliver the mail if current conditions continue.
In testimony before Congress, Postmaster General David Steiner warned the agency is at a critical juncture, with no financial cushion if current conditions continue.
Mail volume has fallen from 213 billion pieces in 2006 to 109 billion today — a loss of more than 100 billion pieces and roughly $81 billion in potential revenue.
At the same time, the Postal Service is being weighed down by what Steiner described as an “anchor,” including a $15 billion borrowing cap that has not changed in more than 30 years, billions in pension costs and a legal mandate to deliver to 170 million addresses six days a week — even when most routes lose money.
Currently, 71% of delivery routes operate at a loss, and nearly 60% of post offices do not cover their costs.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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