Incoming U.S. Postmaster General faces daunting financial issues with agency

Current Postmaster General Patrick Donahoe will retire in February.

Courtesy MGNonline

SPRINGFIELD, Mass. (WWLP)- The current U.S. Postmaster General Patrick Donahoe will retire in February.  The agency’s Chief operating Officer Megan Brennan will be taking over as the first woman to head the Postal Service.

The U.S. Postal Service reported $569 million in revenue last year.  But an overall loss of 5.5. billion dollars.  The losses are a result of a $5.6 billion annual payment for future retiree health benefits.

The U.S. postal service has about 491,000 employees across the nation facing financial issues for several years, because fewer people are using their biggest moneymaker- first class mail- as the internet gains popularity.  Some of those losses have been offset by package deliveries.

The hope is that Brennan, will put the post office on firmer financial ground.

“I hope that there will be a change becase the post office has been losing a lot of money over the past several years and a change in leadership would be a good idea,” Maureen Daley, of Northampton said.

“I would want it to stay the same I mean because I’ve never waited you know. The mail comes when it comes and I would rather have the mail then the computer,” Phillip Thibeault, of Holyoke said.

Postal unions have welcomed the change as postal service officials are pushing lawmakers to allow an end to Saturday mail deliveries and reduce the payment for future retiree health benefits.

The U.S. Postal service is offering seven day service starting Monday through Christmas Day to compete with other package delivery companies.

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