Joseph Corbett

The U.S. Postal Service anticipates having only five days of operating cash on hand after making its annual workers’ compensation payment in October, leaving the agency with slim reserves in the event of an unforeseen downturn. “This is a dangerously low level of cash,” said USPS Chief Financial Officer Joseph Corbett during a teleconference with reporters on Monday. “We do not have a sufficient cash cushion to run a business the size of the Postal Service.” USPS spokesman David Partenheimer clarified Tuesday that the agency should be able to survive with a five-day reserve until the first quarter,

The U.S. Postal Service has lost $2.6 billion so far this year and will require significant help from Congress to get back on track, officials said on Tuesday. During a board meeting, Postal Service leaders reported large losses through the second quarter of 2011. USPS lost $1.9 billion in that same period in fiscal 2010.

The Affordable Mail Alliance highlights the testimony of USPS CFO Joseph Corbett that makes clear the proposed rate increases are not justified under the law or necessary for the continuation of mail services. Testifying yesterday at the Postal Regulatory Commission hearing, Corbett admitted that the Postal Service's cash position this year is no worse than in 2009, when the Postal Service did not seek a rate increase of this kind.

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