The letter also says Postal Service officials privately have warned congressional staff members that “the Postal Service may not be able to make payroll in October and will be forced to issue IOUs instead.”
However, the Postal Service discounted concerns about the payroll and said all employees can expect to get paid on time.
“Postmaster General John E. Potter testified before both the House and Senate earlier this year that the Postal Service would meet its payroll obligations to all employees,” Ms. Veto said. “That remains true. We will make payroll.”
Still, postal officials acknowledge serious financial problems and have pushed for changes in rules requiring the Postal Service to prefund retiree health benefits.
“We are aggressively working with Congress and the White House on ways to address this obligation in a financially sound and reasonable manner and will continue to do so,” she said.
On Tuesday, the Government Accountability Office (GAO) classified the Postal Service in its “high risk” category, citing projected $7 billion in losses for fiscal 2010. The GAO also noted declines in mail volume amid worsening economic troubles in the advertising, financial and housing sectors.
Jim McElhatton is an investigative reporter for The Washington Times. He can be reached at firstname.lastname@example.org.
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