CHALLENGING ECONOMIC CONDITIONS CONTINUE TO REDUCE MAIL VOLUME
Board of Governors told customer service remains top priority
 

As the current economic climate continues to contribute to a decrease in mail volume — and with no reversal in the trend in sight — the Postal Service reported to the Board of Governors today it expects to end the current fiscal year with a volume decline of 9 billion pieces. The end-of-year financial results will be released in November.

At today’s meeting, PMG Jack Potter said the magnitude of the loss in mail requires the Postal Service to take steps now to shore up its business, which it is doing by reducing work hours. “While we deal with the economic challenges, customers and service to our customers will always be No. 1 on our agenda, it is why we exist, it is our franchise,” said Potter.

In other financial news, the Board approved a preliminary fiscal year 2010 appropriation request totaling $144.6 million. This annual request to Congress includes $115.6 million in reimbursement for free services the Postal Service is required to provide, including free mail for blind persons and for overseas voting. The request also includes reconciliation adjustments for previous years based upon final audited mail volumes. In addition, the request includes $29 million for the latest annual installment from the Revenue Forgone Reform Act of 1993. This act requires the Postal Service to be reimbursed for services it performed in 1991 through 1993 and for shortfalls in the reimbursement of costs the Postal Service incurred processing and delivering certain nonprofit mail from 1994 through 1998.