President Obama’s budget proposal supports allowing the U.S. Postal Service to end Saturday mail deliveries, raise the price of stamps above the rate of inflation and recalculate how it plans to pay for the future retirements of postal workers.
The budget proposals mirror plans Obama presented to the fiscal “supercommittee” in September that the panel didn’t adopt.
Although the Postal Service is a self-funding entity that doesn’t use taxpayer dollars to pay for its operations, it is a significant piece of the unified federal budget because its workers and retirees draw benefits from federal workers’ compensation, retirement and health-care accounts.
Postal Service officials said last week that the agency lost $3.3 billion in the quarter that ended in December. While the Postal Service generated $200 million in profit from mail deliveries, $3.1 billion in obligations required by law to prefund future worker retirements — a charge unique to USPS — offset the gains and resulted in the overall loss.