**GAO-10-601T**                      Published: Apr 22, 2010. Publicly Released: Apr 22, 2010.                  

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## Highlights

The U.S. Postal Service's (USPS) financial condition and outlook deteriorated significantly during fiscal years 2007 through 2009. USPS was not able to cut costs fast enough to offset declines in mail volumes and revenues resulting from the economic recession and changes in the use of mail, such as electronic bill payment. In July 2009, GAO added USPS's financial condition to its high-risk list and reported that USPS urgently needed to restructure to improve its financial viability. The Postal Accountability and Enhancement Act (PAEA) of 2006 required GAO to evaluate strategies and options for USPS's long-term structural and operational reform and report by December 2011. Because of USPS's financial crisis and the need for urgent action, GAO accelerated its work and issued a report (GAO-10-455) on April 12, 2010. This testimony provides (1) information on USPS's financial condition and outlook and (2) GAO's perspective on the actions that are needed to facilitate progress toward USPS's financial viability. This testimony is based on GAO's recently issued report and recent testimonies on USPS's financial condition and outlook.

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## Topics

Government Operations

Agency evaluationAgency missionsBudget obligationsCollective bargainingCompensationCost analysisCost controlFederal agency reorganizationFinancial analysisFinancial managementLabor unionsLossesMail delivery problemsPostal facilitiesPostal ratesPostal servicePostal service employeesPrices and pricingRetail facilitiesRetirement benefitsStrategic planningBusiness operationsFinancial condition