Postal Service Reports Fiscal Year 2016 Financial Results
11/16/2016 - According to USPS’s financial results released on Nov. 15, the Postal Service gained $610 million in operating profit in Fiscal Year (FY) 2016. Despite what the headlines say, the Postal Service has now been operating in the black for three straight years, with operating profits totaling $3.2 billion since 2013.
Unfortunately, this good news is overshadowed in press reports by the reported $5.6 billion “loss.” The only cause of that is the Postal Service is unnecessarily saddled by Congress with a mandate to fully pre-fund future retiree health care under the 2006 Postal Accountability and Enhancement Act (PAEA). This pre-funding mandate is something no other government agency, private corporation, or organization is required to do.
In addition, service continues to thrive. Shipping and packaging volume grew an incredible 15.8 percent in FY2016, compared to the same period last year.
“For three years now, the Postal Service has been operating in the black, without receiving any taxpayer funding,” said APWU President Mark Dimondstein. “Shipping and packaging volume continues to skyrocket as online shopping increases in popularity. There is so much potential for a strong, public Postal Service to flourish.
“However, Congress must pass comprehensive postal reform to address the pre-funding sham, allow the Postal Service to expand and enhance service, and adopt appropriate practices for investing the USPS retiree health benefits fund,” he said. “Getting rid of the mandate is a key element to maintain a vibrant public postal service for years to come.”