With many counties nationwide suffering financial difficulties since the economic downturn, it’s no surprise that government agencies are also struggling to keep it together. The New York Times reported today that the United States Postal Service is in bankruptcy. The Postal Service stated that they might have to shut down by this winter if Congress doesn’t come in with some emergency funding. Just like everything else in the federal government , the agency is completely broke. It seems that the Postal Service will default if it can’t make a $5.5 billion payment that is due this month. It seems that if were an option, they would be looking for a bankruptcy attorney now. This year the USPS’s deficit is expected to be higher than $9 billion.
Recently, the USPS has looked at cost-cutting options like stopping Saturday delivery, laying off more than 120,000 postal carriers and closing 3700 post offices. The Postal Service blames the Internet for the drastic drop in mail delivery. They believe this alone has caused the reduced revenues that have put them in financial distress. The U.S. Senate’s governmental affairs committee will be holding a hearing regarding the Postal Service this Tuesday. It’s once again going to be one of those too big to fail bailouts. If this was the private sector they would be searching for a bankruptcy attorney now to file for bankruptcy protection.