US Postal Service Hits Borrowing Limit

Updates

October 28, 2012: as I noted in the original post, October 16, 2012: this was a headline only. I haven't heard a thing since. No one cares. Someone noted that there is no such thing as "borrowing limit" in Washington.

Original Post

I assume, like the two pension payments it has not made, this will be a headline only.

The U.S. Postal Service in September hit its $15 billion borrowing limit from the U.S. Treasury for the first time in its history, leaving the agency with only the revenue it takes in from selling stamps, shipping and other services to cover its enormous operating costs.

The Postal Service has added $2.4 billion to its debt since June 30, pushing the agency to its borrowing cap, a spokesman said Tuesday. "Being at the limit is a serious situation because our limited liquidity does not give us operating flexibility," Postal Service spokesman David Partenheimer said. "Without passage of comprehensive legislation as part of the Postal Service's business plan to return to financial stability, we continue to project low levels of cash."

The agency hit the limit in late September, though it had sufficient cash reserves to make a $1.4 billion workers compensation payment on Monday, Mr. Partenheimer said. The Postal Service was set to disclose its borrowing situation in an annual financial filing due out on Nov. 15. The Postal Service is on a fiscal year that ends Sept. 30.

$2.4 billion added since June 30th -- $2.4 billion every three months?