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Postal Service cuts could be just beginning

It appears that inevitable changes in America's Postal Service are finally nearing reality as budget shortfalls continue to plague post offices.

Postal officials have announced plans to close more that half of its mail processing centers across the nation next year, allowing it to lay off some 30,000 workers.

The result will be felt by many Americans as mail deliveries, including first class mail, slows down. Bill payments, mail delivery of movies and many other day-to-day mail items we have come to expect to arrive in a timely manner will likely now be delayed.

Ironically, the price of first class mail will be going up again in January by a penny even as it becomes a less timely form of delivery.

While the plan may still face some opposition from Congress and mail users, the reality is that the Postal Service has no choice but to take drastic steps to reduce its costs.

The Postal Service is expecting to have a loss of $14.1 billion next year. The closing of the processing centers is expected to save only about $3 billion, so it seems inevitable that even other things could be on the cutting board.

There have been discussions of eliminating mail delivery on some days of the week and closing down some post offices to save money.

What is clear is that hard choices are coming, unless the government is willing to subsidize mail service. That would a political decision that would be hard to make in this era of fiscal restraint in Washington.


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