when innovation is not a part of legislation

Donahoe said that as of Sept. 30 his agency will owe the federal government a payment of $5.5 billion to fund medical costs, in advance, for future retirees, and in November it will need to make a $1.3 billion payment for worker’s compensation.

“The Postal Service will not have the cash available to make both of these payments. We need legislation this year to address that fact,” he said.

If it does come down to crunch time, said Donahoe: “We will deliver the mail.” Employees will be paid, as will suppliers, he said. “The thing we will not do is pay the federal government.”

Without some important changes to the law the post office “cannot survive as a self-financing entity,” Donahoe said.

via Postal Service on path to be broke by October – Business – Consumer news – U.S. business – msnbc.com.

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