Hello Douglas Carey ~
The US Post Office falls under the auspices of the US Dept. of
Treasury - to an extent. It is also an independent part of the
government to an extent.
In 1993, the USPS was charged with the task of being self-contained
and has been charged with solely relying on the sale of services,
stamps and goods to pay the costs of running the world's largest mail
delivery service. To that extent, it is run very much like a private
corporation, but with government oversight and recommendations.
Treasury oversees the President's Commission on the United States
Postal Service whose objective is "... to advise the President on the
state of the United States Postal Service, prepare a report
articulating a vision for the future of the United States Postal
Service, and recommend the legislative and administrative steps
necessary to enact reform needed to ensure the viability of postal
services."
- http://www.treas.gov/offices/domestic-finance/usps/
Included in the contultant projects are:
Project #1:
===========
Analysis of the costs associated with the non-standardization of mail
entry standards and postal processes and operations. (A link to the
project report is immediately below)
- http://www.treas.gov/offices/domestic-finance/usps/pdf/project-1.pdf
(this is in PDF format and you'll need Acrobat to read it)
Project #2:
===========
Development of future mail volume projections.
Project #3:
===========
Analysis of the collective bargaining model currently utilized by the
Postal Service and its employee unions and an assessment of possible
alternative models.
Project #4:
===========
Analysis of the Postal Service’s current logistics network and the
development of a network optimization model.
Project #5:
===========
A telephonic survey of consumer attitudes about the Postal Service,
including its products and services, and various proposals to reform
the business model and operations of the Postal Service
Project #6:
===========
Analysis of the past and current use of price caps in the
telecommunications industry and other regulated industries and an
assessment of their effectiveness in providing rate predictability and
improving productivity.
See: http://www.treas.gov/offices/domestic-finance/usps/projects.html
The Commission is also charged with overseeing public comments,
hearings and input regarding the USPS, and also gives the Postal
Service a chance to rebut. It really is a sort of unique arrangement.
USPS Organization
=================
The USPS is overseen by the United States Postmaster General, John E.
Potter, who assumed those duties on June 1, 2001. The Postmaster
General is appointed by the President.
Information about Mr. Potter can be found here:
- http://www.usps.com/communications/organization/pmg.htm
Information about the office of the Postmaster General can be found
here:
- http://www.uspsoig.gov/
There is also a Board of Governors, which "is comparable to a board of
directors of a private corporation. The Board includes nine Governors
who are appointed by the President with the advice and consent of the
Senate."
- http://www.usps.com/communications/organization/bog.htm
Revenues and Expenditures:
==========================
The USPS today handles more than 200 billion pieces of mail per year,
and has revenues of $65.8 billion. USPS income is realized from the
sale of its services and interest income.
- See 2nd Quarter FY 2003 Report (November 1, 2002 to February 21,
2003)
http://www.usps.com/financials/_pdf/2003Q2.pdf
In 2002, it invested more than $978 million in new or improved
buildings and mail processing equipment and leased 26,594 facilities
at a cost of $818.9 million a year, providing tax revenue to thousands
of communities.
In addition, the USPSP pays almost $2 billion in employee salaries and
benefits every two weeks.
- http://www.usps.com/communications/organization/postalfacts.htm
Excess revenues are used first to pay off debt and then invested to
help offset operating expenses.
** Search terms used -
- USPS organization
- USPS revenues
- USPS expenses
I enjoyed the opportunity to research this subject, and am really
impressed that things run so well, considering the sheer volume of
mail handled by the USPS on a daily basis.
Regards,
Serenata |
Request for Answer Clarification by
douglascarey-ga
on
06 May 2003 08:43 PDT
Thanks for the answers, but I need clarification on one thing. A
typical private business makes a profit and either a) the owner keeps
the profits, b) the profits are reinvested in the company, or c) if
the company is public the earnings can be given to the shareholders in
the form of dividends. If the USPS has a real profit, where does that
money go? They cannot just always reinvest it. Does the Treasury get
the money? There has to be some mandate that says something like "In
the event of profit, the money shall be distributed..."
|
Clarification of Answer by
serenata-ga
on
06 May 2003 13:26 PDT
Douglas,
There are no profits. Excess in revenues over expenditures, if any,
are put back into the expenses of running the USPS, from acquisition
and improvement of facilities, equipment, etc., to the day-to-day
costs involved in keeping the mail moving.
The rationale for the last raise in first class postage was the
projected deficit over projected income. By necessity, excesses are
reapplied to the benefit of the USPS.
Yours,
Serenata
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