Cranford Post Office Faces National Money Problems

With a fleet of red-white-and-blue trucks lined up outside the Cranford United States Postal Service, it's easy to see one reason why post offices nationwide are having fiscal problems, Postmaster Wayne Orshak said.

"The post office has the largest public sector civilian fleet," he explained. Even small increases in gas prices make a big dent in the budget. "The price of fuel is a driver of it."

Facing a $7 billion loss next year, the USPS announced last Tuesday that it is considering price increases. Proposals include an increase in the cost of stamps, from 44 to 46 cents, an increase in postcard stamps from 28 to 30 cents and standard mail parcels to jump in price by 23 percent. If approved, those changes will go into effect January 2.

While fuel prices lend to the loss, Orshak added that a decline in mail volume is also a contributor. As businesses tighten their belts in the recession, mail advertising is one of the first things to go–which means less revenue for the post office.

USPS northern New Jersey spokesman George Flood explained that mail volume has declined nationally by 12.8 percent. 

"Key postal business customers across the nation, including many here in the Garden State, have been devastated and have withdrawn from using the mail–credit card companies, financial institutions, real estate companies, and retailers are just a few examples," he said. Some of the $7 billion loss is also the result of fixed costs, like salaries, benefits and real estate.

But much of the deficit comes from a post office retirement escrow fund, he added, which is required by legislation passed in 2006. It is estimated that the USPS may have overpaid into that fund by the millions, he said. 

But while the national USPS struggles, back in Cranford, Orshak continues to be optimistic. Although the Cranford USPS is finding it necessary to leave some employee vacancies where workers have retired or transferred to another facility, Orshak said he hopes that new technology may be the answer to some issues.

New online services and an automated postal center has allowed customers to access Cranford USPS around the clock. In his opinion, these technologies may allow post offices nationwide to increase revenue—and USPS may need fewer employees in the future.

"In some respects we don't even need a postal building anymore," he said.