Herald-Whig Senior Writer

The U.S. Postal Service is feeling the financial crunch along with everyone else.

"We're making changes to operations, staffing and facilities similar to what other businesses are doing in these tough economic times," said Valerie Hughes, a USPS spokesman for the St. Louis district.

Quincy Postmaster John Beck said one city delivery route was recently eliminated as part of the cost-cutting campaign. There are now 36 routes, and other carriers absorbed the eliminated route. That move eliminated the need for a carrier as well as one vehicle.

Beck also said some rural carriers are using USPS vehicles because the costs are lower than mileage charges when private vehicles are used.

"We continue to search for reduction in work hours and overtime ... and other cost savings," Beck said.

The cost-cutting moves are necessary, because postal use has fallen nationwide. During the last fiscal year, mail volume fell by 9.5 billion pieces (4.5 percent) from the previous year. Volume at the Quincy post office is running about 4 percent behind the previous year, Beck said.

Hughes said first-class mail is down due to the use of e-mail, online bill paying and other electronic means of communication. Businesses also have generally cut back on advertising, which has reduced the second- and third-class volume.

"This past year, we've seen some of our biggest mailing customers, in fields like financial services, insurance and housing, struggle at an unprecedented level," Hughes said.

Cost containment moves outlined by Hughes include early retirement offers for eligible workers, consolidation of redundant mail processing, reduction in overtime and some post offices are adjusting their operating hours.

This is not the first time the USPS has adjusted to economic trends. Starting in the 1980s, most new employees with the postal service have been classified as "non-career employees" who do not earn retirement or health benefits.

"The postal service is a self-supporting agency, funded entirely from the sale of postal products and services, not from tax dollars," Hughes said.

Congress added to the USPS financial squeeze with a law that mandates $5.6 billion must be invested in the retiree health benefit program. Members of Congress also are considering whether postal deliveries should be trimmed to five days a week.

Dora Peto, a postal patron from Quincy, said she does not oppose streamlining for the USPS. She does want to see service be made more reliable. In 1997, Peto's son was living in Florida and mailed a plate to her for Mother's Day. She has never received that package and has lodged other complaints about service.

"I want to see them do their jobs," Peto said.

-- dwilson@whig.com/221-3372