At Postal Service, A Plan for Survival

Lawmakers on Thursday will consider various proposals to restructure the US Postal Service, just days after government auditors warned that it must quickly address its financial viability. Confronting a sharp decline in mail volume tied to the recession and the continuing migration to e-mail and online payment options, the Postal Service projects a net loss of $7 billion this fiscal year and debt exceeding $10 billion, leading to a cash shortfall of about $1 billion. Losses are expected next year as well. The Government Accountability Office added the Postal Service to its list of high-risk government agencies and programs on Tuesday, and it will further explain its decision Thursday at a House subcommittee hearing. The GAO has urged a rapid overhaul of the Postal Service that includes layoffs, plant closures and changes to retiree health benefits. Since 2006, federal law has required the agency to pay about $5.5 billion annually to cover future retiree benefit costs while paying $2 billion to $4 billion a year to cover current retirees.