USPS – September 08, 2017
Under our current business model we cannot generate enough revenue to pay all of our legally required bills because most of our costs are dictated by law, and we have very limited legal authority to fund those costs by raising prices or by introducing new products. In addition, our financial condition has worsened this year as volume declines have accelerated. Given these facts, we would prefer not to speculate on the precise level of price increases that would be necessary to enable the Postal Service to pay all of our bills in the event Congress does not enact postal reform legislation. That said, we continue to believe our problems are serious, but solvable, and that a combination of aggressive management of the business, as well as legislative and regulatory reforms, will be required. Suffice it to say, however, that if any one of these strategies is eliminated, then much more intense pressure will be brought to bear on the remaining strategies.