The Woodward News

Local News

February 6, 2013

Postal Service to cut Saturday mail to trim costs

(Continued)

Woodward, Okla. —

The Postal Service is making the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, the statement said.

"The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said. "The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail."

He said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.

The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy.

The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand.

The agency's biggest problem — and the majority of the red ink in 2012 — was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.

The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have.

Text Only
Local News
  • State board votes again to delay education plan

    OKLAHOMA CITY (AP) — Oklahoma's State Board of Education voted on Wednesday for a second time to delay a formal plan for adopting new education standards in math and English amid opposition to the proposal from three education groups that represent public school boards and administrators across Oklahoma.

    July 24, 2014

  • Winners of Cudd Legacy award named

    Three veterans of the oil industry will receive this year's Bobby Joe Cudd Legacy Award during the Tri-State Oil and Gas Convention on Aug. 7 at the Woodward Conference Center.

    July 24, 2014

  • Benefit gun raffles underway

    Woodward Reserve police officers and other Woodward full time officers have come together to support one of their own.

    July 24, 2014

  • Tulsa man looking for military friend

    There are times in everyone's life when you think back and wonder whatever happened to those old friends from your past.

    July 23, 2014

  • Zoning change approved by commission

    Monday night Woodward city commissioners unanimously approved a zoning change that was contested by one local man who was protesting because he wants the neighborhood to continue its residential growth.

    July 23, 2014

  • Tangier Reunion set for Saturday, Sunday

    When Barbara (Allison) Merwin thinks back to the years she spent in the classrooms of Tangier High School, it takes a few moments for her to recall how school life was 60 years ago.

    July 23, 2014

  • Traveler Majors take regional opener

    ALVA - The Traveler Majors continued their strong Connie Mack playoff showing at Northwestern Oklahoma State University Tuesday.

    July 22, 2014

  • County OKs road use agreement

    Woodward County Commissioners on Monday approved a final version of a road use agreement between a energy company planning a wind turbine construction project near southeast Woodward County.

    July 22, 2014

  • Camp to show art is everywhere

    The Woodward Arts Theatre will become a recycling plant next week.

    July 22, 2014

  • Fairview Wrangler Rodeo turns 50 this year

    Western fun continues in Northwest Oklahoma as the Fairview Wrangler’s hosting their 50th annual rodeo.

    July 22, 2014