WASHINGTON -- A new plan announced by Postmaster General Patrick Donahoe will save the U.S. Postal Service an estimated half a billion dollars each year. The plan also addresses concerns of residents in rural areas that were facing post office closures.
Up to 3,700 low-revenue post offices were slated for closure or consolidation starting sometime after May 15. Many of those were in rural areas.
Under the proposed plan, no post office would be closed, but more than 13,000 rural facilities could see reduced operations of between two and six hours.
The agency plans to seek regulatory approval for the plan and get community input. That process could take several months.
Iowa Governor Terry Branstad released the following statement after the plan was announced…
“I am pleased that the United States Postal Service has taken a more thoughtful approach in addressing their fiscal concerns. Clearly, the USPS heard loud and clear from the hundreds of Iowans who showed up at town meetings across the state to voice their concerns regarding the disproportionate impact that rural communities would have felt if the USPS had followed its initial plan. I am proud of the Iowans who stood and made their voice heard on this very important issue and thank the congressional delegation for engaging on this issue. To rural communities, a post office is an identity, a way of life, and most importantly, a critically vital economic development tool.”
The Postal Service has forecast a record loss of more than $14 billion by the end of the year. Without changes, it says losses will exceed $21 billion by 2016.
(The Associated Press contributed to this story)
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