In addition, the postal service projects outstanding debt beyond the annual statutory limit of $3 billion, and an unprecedented $1.5 billion cash shortfall.

The year 2010 doesn't offer much hope - the service projects mail volume will decline by an additional 10 billion pieces, leading to financial losses similar to 2009's. Now being considered are layoffs, consolidating operations and closing unnecessary facilities.

SPEAKING OF WHICH ...

In other postal news, the mail service's designers have finally figured out how to get that ski-slope nose inside the frame and are releasing a new 44-cent stamp honoring famed comedian Bob Hope.

The stamp will be displayed at a ceremony Friday aboard the USS Midway in San Diego. Hope, who died at age 100 in 2003, was famous for entertaining American troops in war and peace around the world. He performed two shows on the Midway and entertained U.S. forces in conflicts ranging from World War II to the first Persian Gulf war.

"I think he would be thrilled, absolutely honored and love the thought of it," daughter Linda Hope told the Associated Press. "It would also be an opportunity for him to get in a few jokes about the rise in the cost of postage."

In announcing the award last November, the USPS noted that Hope, although he never served in the military, earned the nickname "GI Bob" for his work, and in 1997 became the first person recognized by Congress as an "honorary veteran of the U.S. armed forces." He also was awarded the Congressional Gold Medal and the Presidential Medal of Freedom.

The postal service clearly sees a big demand - it has printed up 100 million Hope stamps and will begin selling them nationwide.