By Kandyce Hall |Staff Writer|
With more and more people using the Internet for forms of written communication, the Postal Service is losing billions in revenue.
The effects of this loss has caused the daily mail delivery service to quickly sink within the past year.
The Postal Service has existed for 238 years and despite its prestigious history is now losing $25 million each day. The system lost $1.9 billion between January and March of this year and a total of $15.9 billion last year reports, The LA Times.
According to The LA Times, officials said the Postal Service has reached its borrowing limit with the Federal Treasury. As a result, other strategies must be sought out to keep the service afloat.
The Government Accountability Office states that Americans use of paper mail volume has decreased by a quarter since 2006.
Since the decrease of revenue, actions have taken place in order to save money.The Postal Service has tried different avenues such as merging mail facilities and lowering express delivery standards.
“Staffing cuts and elimination of facilities have saved the Postal Service some money, but not enough,” said Postmaster General Patrick Donahoe.
As a result of failed attempts to keep the company alive, they have considered a reform.
“We are in real trouble, and we need comprehensive postal reform,” said Mickey Barnett, chairman of the Postal Service Board of Governors.
The Postal Service has attempted to make changes such as the elimination of many post offices, but the plan was scrapped after postal officials stated that it wouldn’t be favored by Congress.
A recent attempt to end Saturday mail delivery which would save the postal service $2 million a year, was rejected by Congress.
“I don’t think The Postal Service should stop delivering mail on Saturdays,” said student Valerie Silva, “ending the service would mess up the flow of the mail delivery schedule.”
The Postal Service problems don’t only come from a decrease usage of snail mail, its also being affected from an act passed by congress in 2006, reported The LA Times.
Snail mail refers to an actual package being delivered to your door and was given the name ever since electronic mail (e-mail) took over.
According to The LA Times, “The Postal Accountability and Enhancement Act required The Postal Service to start pre-funding the health benefits of future retirees 50 years in advance at a rate of about $5.6 billion a year. One year after the act was passed, The Postal Service ledgers showed a loss of $5.1 billion.”
The act has limited The Postal Service ability to raise rates. Since 2006, the effects of the recession have caused The Postal Service funding to decline.