Washington D.C. – Frontiers of Freedom President expressed alarm about the U.S. Postal Service’s latest quarterly loss of $1.5 billion to start the 2019 fiscal year. The latest losses underscore the USPS’ failure to fulfill proper cost controls, accuracy in pricing, and neglect in meeting its long-term obligations to the federal government and the agency’s thousands of employees.
On the USPS financials, George Landrith, president of Frontiers of Freedom, stated:
“The latest massive loss detailed by the Postal Service demonstrates that there is still much work left to be done to meaningfully change the USPS business model. In 2018, the Administration had success in helping the USPS to better crack down on drug transports through the mail, and to ensure better deals for American businesses on international shipments.”
Landrith continued, observing that, “the Postal Service wants to be treated like a private business, but nearly every “business decision” has made its finances and service quality increasingly worse. Fortunately, the Administration’s Postal Task Force report provides a promising roadmap for reform with an emphasis on critical structural separation changes. In truth, there needs to be clear distinctions between USPS’ monopoly service and its underpriced competitive services, like subsidized parcel shipments.”
Landrith concluded: “Analyzing the viability of all USPS services based on proper cost and revenue analyses will be an essential step for Postal leaders. The understaffed oversight bodies must be outfitted with financially astute professionals who are commitment to transparency and accountable practices. Installing experienced regulators and leaders must be a priority to get the Postal Service on a sustainable path.”
The USPS Board of Governors is currently seven members short of its full complement. Nominees announced by the President last month have yet to be confirmed: Ron A. Bloom, Robert M. Duncan, Roman Martinez IV, and Calvin R. Tucker. The Postal Regulatory Commission, which recently added Michael Kubayanda, will soon be two members short as the terms for Nanci Langley and Tony Hammond are expiring this year.