Detroit based beverage company, Faygo recently announced its newest flavor—Faygo Gold. With more than fifty flavors, Faygo Gold is a “spicy ginger ale”. The launch of the new flavor is coupled with a St. Patrick’s Day promotion and a partnership with Tapper’s Jewelry featuring the tagline, “At the End of the Faygo Flavor Rainbow…is Gold”.

The promotion features opportunities to win a “Pot of Gold”—a cauldron that includes Faygo Gold pop, T-shirts, and a 24K solid gold bar from Tapper’s Diamonds and Fine Jewelry and Tapper’s Gold Exchange.

“With a 105 year history of pop innovation, Faygo fans have come to expect new flavors that are bold and unique,” said Al Chittaro, executive vice president of Faygo Beverages, Inc. “Consumers are already voicing rave reviews for Faygo Gold, a rich, zippy, ginger ale. Our partnership with another celebrated Michigan brand, Tapper’s Jewelry, is a great way to celebrate the launch of Gold with our loyal fans.”

In order to be eligible for the “Pot of Gold”, Faygo fans are asked to take a photo of “what” or “who” is most valuable to them and upload the photo to Instagram with the hashtag, #FaygoGold. The contest runs from March 15, 2013 to March 29, 2013. The winners will be announced on Instagram, Facebook and Twitter. The first place winner’s “Pot of Gold” will include a solid gold bar valued at $250; second place--$100; and third place--$50.

Faygo has several different types of soft drink beverages and variety of flavors, including Detroit favorites Red Pop and Rock & Rye. The company’s founders, the Feigenson brothers are credited with coining the regional term “Pop” because of the sound that the soda makes when it is opened. Their headquarters have been located at 3579 Gratiot since 1937.
 

Follow Amber L. Bogins on Twitter @AmberLaShaii

The verdict is in on the charges against Detroit’s former mayor Kwame Kilpatrick, his father Bernard Kilpatrick and Detroit contractor Bobby Ferguson ... and the news is not good. Both the former mayor and his friend and supporter Ferguson, have been found guilty on an overwhelming number of charges of conspiracy, extortion, fraud, tax evasion and misuse of government funds.

Prosecutors are apparently elated about the guilty verdicts for Kilpatrick and Ferguson, although the elder Kilpatrick who faced only four counts of misdoing was found not guilty on two counts and the jury was hung on the third count, having been found guilty of one count of tax evasion. Insiders speculate that Bernard Kilpatrick was not an active participant in his son’s criminal enterprise, known as Kilpatrick, Inc.

The guilty verdicts bring to a close a tragic and dark period for Detroit’s citizens who have endured the years-long and arduous process of putting the political disgrace of the one-time political prodigy behind them.

Jurors convicted Kilpatrick of a legthy list of crimes, including a racketeering conspiracy charge. During the five-month trial Kilpatrick's already tarnished image, took even moe of a beating as he emerged as an arrogrant and unremorseful 'politrician' who took bribes, rigged contracts and lived far beyond his means while in office until fall 2008.

Following is a list of charges and verdicts against former mayor Kwame Kilpatrick, his father Bernard Kilpatrick and co-conspirator Bobby Ferguson

Count 1: Racketeering Conspiracy
KWAME KILPATRICK
GUILTY

Count 1: Racketeering Conspiracy
BOBBY FERGUSON    
GUILTY    
    
Count 1: Racketeering Conspiracy
BERNARD KILPATRICK
No verdict reached    
    
Count 2: Extortion - Sewer Lining Contract
BOBBY FERGUSON
GUILTY
    
Count 2: Extortion - Sewer Lining Contract
KWAME KILPATRICK
GUILTY
    
Count 3: Extortion- Amendment to Sewer Lining Contract
KWAME KILPATRICK
GUILTY

Count 3: Extortion- Amendment to Sewer Lining Contract
BOBBY FERGUSON    
GUILTY

Count 4: Extortion - Baby Creek/Patton Park
KWAME KILPATRICK    
GUILTY

Count 4: Extortion - Baby Creek/Patton Park
BOBBY FERGUSON
GUILTY

Count 5: Attempted Extortion, Oakwood Pump Station
KWAME KILPATRICK    
GUILTY
    
Count 5: Attempted Extortion, Oakwood Pump Station
BOBBY FERGUSON
GUILTY
    
Count 7: Extortion - Outfalls Contract
KWAME KILPATRICK
No consensus    
    
Count 7: Extortion - Outfalls Contract
BOBBY FERGUSON
GUILTY
        
Count 8: Extortion - Asbestos Abatement
KWAME KILPATRICK
No consensus

Count 8: Extortion - Asbestos Abatement
BOBBY FERGUSON
GUILTY
    
Count 9: Extortion - Repair of Eastside Water Mains
KWAME KILPATRICK
GUILTY
    
Count 9: Extortion - Repair of Eastside Water Mains
BOBBY FERGUSON
GUILTY

Count 10: Extortion - Eastside Sewer Repair
KWAME KILPATRICK
NOT GUILTY
    
Count 10: Extortion - Eastside Sewer Repair
BOBBY FERGUSON
NOT GUILTY

Count 15: Attempted Extortion, Sludge Contract
BERNARD KILPATRICK    
NOT GUILTY
    
Count 16: Bribery-$90,000 Bribe
KWAME KILPATRICK
No consensus

Count 16: Bribery - $90,000 Bribe
BOBBY FERGUSON    
GUILTY

Count 17: Bribery - $75,000 Bribe
KWAME KILPATRICK
GUILTY

Count 17: Bribery - $75,000 Bribe
BOBBY FERGUSON
GUILTY

Count 18: Mail Fraud
KWAME KILPATRICK    
GUILTY
    
Count 19: Mail Fraud
KWAME KILPATRICK
GUILTY
    
Count 20: Mail Fraud
KWAME KILPATRICK
GUILTY
    
Count 21: Mail Fraud
KWAME KILPATRICK
GUILTY
    
Count 22: Mail Fraud
KWAME KILPATRICK
GUILTY
    
Count 23: Mail Fraud
KWAME KILPATRICK
GUILTY

Count 24: Mail Fraud
KWAME KILPATRICK
GUILTY
    
Count 25: Mail Fraud
KWAME KILPATRICK
GUILTY
        
Count 26: Mail Fraud
KWAME KILPATRICK
GUILTY

Count 27: Mail Fraud
KWAME KILPATRICK
NOT GUILTY

Count 28: Mail Fraud
KWAME KILPATRICK
GUILTY

Count 29: Wire Fraud
KWAME KILPATRICK
NOT GUILTY

Count 30: Wire Fraud
KWAME KILPATRICK
GUILTY

Count 31: Subscribing False Tax Return
KWAME KILPATRICK
GUILTY

Count 32: Subscribing False Tax Return
KWAME KILPATRICK
GUILTY

Count 33: Subscribing False Tax Return
KWAME KILPATRICK
GUILTY

Count 34: Subscribing False Tax Return
KWAME KILPATRICK
GUILTY
    
Count 35: Subscribing False Tax Return
KWAME KILPATRICK
GUILTY
    
Count 36: Income Tax Evasion
KWAME KILPATRICK
GUILTY

Count 37: Subscribing False Tax Return
BERNARD KILPATRICK    
NOT GUILTY

Count 38: Subscribing False Tax Return
BERNARD KILPATRICK
GUILTY

Please stay tuned to the michiganchronicle.com for more details and regular updates.

When Yahoo CEO Marissa Mayer asked her employees who normally work at home to work from the office instead, where there is an on-site nursery, the criticism was fierce. But what if Mayer was a man, asks Keli Goff on the Huffington Post.

When reading about some of the criticism lobbed at Mayer and Sandberg, I couldn't silence a nagging question in my head: what if they were men?

Picture a young, brash, Silicon Valley male hotshot, announcing that he would be building an inner-office nursery, because he did not want to sacrifice bonding with his newborn and helping his spouse, for the sake of his corporate pursuits? Why do I get the feeling he would be met with lots of "Awww. What a great guy and dad!" He would probably enjoy some adoring profiles in women magazines, and maybe The View. Even if he were requiring other employees to come into the office, it's likely that being seen as an attentive father would soften his image, providing a helpful contrast to his tough, taskmaster, "you-better-come-into-the-office-or-else" persona. But for Mayer, the criticism has been vocal and prolonged. She is perceived as insensitive, and out of touch.

Similarly, if a male senior executive at Google announced that he made a point to have dinner with his children every day, how much would that little detail keep popping up in profiles as proof that despite what a shark some may think he is, he is more grounded than the average exec. …

Of course people aren't really mad at Mayer or Sandberg for the reasons they pretend. They are picking at them for the same reason we often feel the need to pick at women like them: They seem perfect and it's infuriating to those of us who don't have lives that feel perfect. 

Read more here.

The show's first reporter of color since Ed Bradley's death is to bring his skills to the rival network.

ABC News is finalizing a deal to hire Byron Pitts of CBS, a contributor to "60 Minutes" and chief national correspondent for the "CBS Evening News, " according to reliable news reports published Friday.

"Pitts will serve as both chief national correspondent and anchor at ABC News, and will appear across the network's programming. ABC News President Ben Sherwood is expected to announce the news next week," Dylan Byers of Politico, the first to break the news, reported. Marisa Guthrie of the Hollywood Reporter later reported that she had been given the same information by "sources."

"Pitts is just the latest in a string of high-profile hires for the network," Byers wrote. "Sherwood announced the hire of New York Times reporters Jeff Zeleny and Susan Saulny earlier this week, as well as the appointment of Rick Klein to political director. Sources who spoke to POLITICO earlier this week said Sherwood is trying to beef up the network's political bench following a number of recent departures."

Both Pitts and Saulny are black journalists, providing a marked contrast with the new hires at CNN after Jeff Zucker recently assumed the top job. Zucker hired white journalists Jake Tapper, Chris Cuomo and Rachel Nichols while sidelining anchor Soledad O'Brien, who is black and Latina. Zucker's appointment also prompted the resignation of Mark Whitaker, an African American who was CNN executive vice president and managing editor. Zucker's personnel moves prompted protests from the National Association of Black Journalists and the National Association of Hispanic Journalists.

Pitts, 52, joined CBS News as a correspondent in May 1998. He was named a contributing correspondent on "60 Minutes" in 2009, becoming the first African American presence on the show since correspondent Ed Bradley died in 2006. "I wanted to be a part of '60 Minutes' since I was in high school," Pitts then told Richard Huff of the Daily News in New York. "For me, '60 Minutes' is to broadcast journalism what the Yankees are to baseball: It's the gold standard."

Pitts, ABC News and CBS News were not commenting on Friday.

Read more here.

Interviewer: Ocean Pleasant, Global Youth Editor of ORIGIN Magazine

Ocean Pleasant: You have an extremely powerful presence in mainstream media. How do you use that platform to try and instigate positive change in the world?

Russell Simmons: Well, I try to use my voice. I know that celebrity is valuable, and people do listen. I jokingly refer to Kim Kardashian as more powerful than the President because she actually has 50 million more Twitter followers than the President. I have 2 million Twitter followers. Some of those people are also yogis and activists and people who really go out and make a difference. I do as much as I can with my voice. It’s effortless in some cases. I try to remind everybody that they have that kind of voice. And really, I don’t know that God favors the person who has a greater reach than those who have a small reach. It’s the intention. I try to keep a positive intention, and use whatever resources I have to benefit others. I try to create businesses that I think are not hurtful. I try to do things that I think are helpful to the environment, to the animals, and to the planet.

Read more here.

By Carol Cratty and Tom Cohen, CNN

Washington (CNN) -- Dabbing at his eyes with a handkerchief, former U.S. Rep. Jesse Jackson Jr. pleaded guilty on Wednesday to one federal charge related to using campaign funds for personal expenses.

"Guilty, your honor," Jackson responded to U.S. District Judge Robert Wilkins after looking back at family members in the courtroom, including his father, civil rights activist Jesse Jackson.

"I used monies that should have been used for campaign purposes," Jackson acknowledged to the judge.

When Wilkins asked if he realized that the guilty plea meant giving up the right to a trial, Jackson responded: "I have no interest in wasting the taxpayers' time or money."

Wilkins set sentencing for June 28.

Jackson's wife, former Chicago Alderman Sandra Stevens Jackson, had her own court appearance scheduled for a few hours later. She was expected to plead guilty to filing false tax returns.

Wednesday's hearing completed the fall of a once rising political star from Chicago. He won won re-election to Congress last year despite personal problems, including a mood disorder that caused him to drop out of sight for months during the campaign.

Asked standard legal questions by Wilkins to ensure he was of sound mind to enter his plea, Jackson said he had been hospitalized and acknowledged being treated by a psychiatrist.

His treatment was not for alcohol or drug abuse, Jackson said, adding that he had a beer on Tuesday night but "I have never been more clear in my life than I am now."

"I fully understand the consequences of my actions," he said.

Jackson pleaded guilty to one count of conspiracy to commit wire fraud, mail fraud and false statements.

That charge carries a maximum of five years in prison and a $250,000 fine, but Wilkins noted that prosecutors and defense attorneys said sentencing guidelines indicated an appropriate sentence of 46 to 57 months in prison and a fine of between $10,000 and $100,000.

However, Wilkins said he was not bound by sentencing guidelines, telling Jackson: "The bottom line is, I don't know what sentence you're going to get and you don't know what sentence you're going to get."

Jackson's lawyer, Reid Weingarten, told reporters after the hearing that he would mount a strong legal case for a fair sentence, noting his client is the father of two young children and has the health problems mentioned in court.

"It turns out that Jesse has serious health issues," Weingarten said. "... We are going to talk about them extensively with the court and those health issues are directly related to his present predicament. That is not an excuse. That is just a fact. And Jesse has turned a corner there as well."

Neither Jackson nor his wife spoke to reporters when they arrived at the courthouse in Washington.

Last week, prosecutors filed charges against the couple in separate criminal informations, which are used when parties strike plea agreements.

The documents say the former Democratic congressman from Illinois misused about $750,000 in campaign funds from August 2005 through approximately July 2012.

According to court documents, Jackson's campaign credit cards were used for $582,772 in personal expenditures. Jackson's purchases included a gold-plated men's Rolex watch costing more than $43,000 and almost $10,000 in children's furniture.

As part of the plea agreement Jackson, 47, will have to forfeit the $750,000 in improperly used funds and assorted memorabilia that prosecutors said he bought with campaign cash.

The items include two hats belonging to the late singer Michael Jackson costing more than $8,000; a $5,000 football signed by U.S. presidents; and memorabilia involving the Rev. Martin Luther King Jr., Malcolm X and martial artist Bruce Lee.

Jackson issued a statement through his attorneys on Friday that said, in part: "I offer no excuses for my conduct and I fully accept my responsibility for the improper decisions and mistakes I have made."

Jackson's wife is not mentioned by name in the document outlining misuse of campaign funds.

But there are references to her as "Co-Conspirator 1," a former consultant and later the manager of Jackson's re-election campaign. According to the court documents, "Co-Conspirator 1" bought $5,150 worth of fur capes and parkas and had them shipped from Beverly Hills, California, to Washington.

Sandra Jackson faces up to three years in prison and a $250,000 fine for one count of filing false tax returns from 2006 through 2011.

Jesse Jackson Jr. had served in Congress since 1995. His name came up during the investigation of former Illinois Gov. Rod Blagojevich, linked to allegations that Blagojevich attempted to sell the U.S. Senate seat vacated by Barack Obama when he became president.

No charges were filed against Jackson, but the House Ethics Committee decided to look into whether Jackson or an associate offered to raise a large amount of money for Blagojevich in exchange for Jackson getting the Senate seat.

Jackson dropped out of sight last spring and his office later said he was being treated at the Mayo Clinic for a mood disorder, depression and gastrointestinal problems. He was re-elected in November but resigned a few weeks later.

His father recently said his son was "taking his medication and handling his challenges."

Sandra Jackson resigned her position as a Chicago alderman in January.

Washington (CNN) -- The Senate Intelligence Committee will receive a classified document Thursday that seeks to justify the administration's policy of targeting Americans overseas via drone attacks, chairwoman Dianne Feinstein said.

"I am pleased that the president has agreed to provide the Intelligence Committee with access to the OLC (Office of Legal Counsel) opinion regarding the use of lethal force in counterterrorism operations," the California Democrat said in a statement Wednesday.

"It is critical for the committee's oversight function to fully understand the legal basis for all intelligence and counterterrorism operations."

The announcement came shortly after an administration official said President Barack Obama had yielded to demands that he turn over to Congress the classified Justice Department legal advice that seeks to justify the policy.

"Today, as part of the president's ongoing commitment to consult with Congress on national security matters, the president directed the Department of Justice to provide the Congressional intelligence committees access to classified Office of Legal Counsel advice related to the subject of the Department of Justice white paper," an administration official said Wednesday.

The 16-page white paper -- titled "Lawfulness of a Lethal Operation Directed Against a U.S. Citizen who is a Senior Operational Leader of Al Qaida or an Associated Force" -- is a policy paper rather than an official legal document. That policy paper was sent to key congressional committees last year but became public just this week.
The president, the official said, was turning over the legal opinion related to the policy because he believes the scrutiny and debate is healthy.

The Senate Intelligence Committee is expected to receive the document the same day Obama's pick for CIA director, John Brennan, faces a confirmation hearing.

Brennan's hearing Thursday comes amid complaints from senators, including several Democrats, about secrecy surrounding the drone policy.

Amnesty International also weighed in on the debate, saying Congress should grill Brennan on his claim that the Obama administration's drone strikes are "conducted in full compliance with the law."

"Furthermore, Congress should immediately hold public hearings with independent experts to examine the administration's legal reasoning and ensure that the administration is following the 'rule book' for the use of lethal force that already exists: international human rights law and, in the very narrow circumstances to which it applies, international humanitarian law," the group said.

In a 2012 speech at the Woodrow Wilson International Center for Scholars in Washington, Brennan asserted that the drone strikes are legal under the Authorization for Use of Military Force resolution passed by Congress after the 9/11 attacks.

In addition, "There is nothing in international law that bans the use of remotely piloted aircraft for this purpose or that prohibits us from using lethal force against our enemies outside of an active battlefield, at least when the country involved consents or is unable or unwilling to take action against the threat," Brennan said at the time.

This does not appear to be the view of Ben Emmerson, United Nations special rapporteur on counterterrorism and human rights, who announced plans in October to investigate U.S. drone attacks and the extent to which they cause civilian casualties.

The drone campaign against al Qaeda and its allies has been one of Brennan's biggest legacies in the four years he was the president's principal adviser on terrorism.

According to a count by the public policy group New America Foundation, at least 28 of al Qaeda's leading members have been killed in drone strikes, including the U.S. citizen Anwar al-Awlaki, who played an operational role in al Qaeda in the Arabian Peninsula.

On Wednesday, the chairman of the House Intelligence Committee said the attack that killed al-Awlaki was justified.
"This is somebody who had said that he didn't want his U.S. citizenship anymore," Rep. Mike Rogers, R-Michigan, told MSNBC's "Andrea Mitchell Reports."

He said al-Awlaki had officially joined al Qaeda, and al Qaeda had declared war on the United States."

"The legal basis of this goes back many, many years when U.S. citizens would go and fight for foreign nations that were engaging in combat with the United States," Rogers said. "So what they were saying is, once you've made that choice, you no longer get the protections that you would. I mean, if you join the enemy overseas, you join the enemy overseas. And we're going to fight the enemy overseas."

In his speech at the Wilson Center, Brennan said drone strikes are "ethical" because of "the unprecedented ability of remotely piloted aircraft to precisely target a military objective while minimizing collateral damage; one could argue that never before has there been a weapon that allows us to distinguish more effectively between an al Qaeda terrorist and innocent civilians."

And Obama himself defended it in an appearance last October on "The Daily Show."

"There are times where there are bad folks somewhere on the other side of the world, and you've got to make a call and it's not optimal," he said. "And sometimes you've got to make some tough calls. But you can do so in a way that's consistent with international law and with American law."

http://www.cnn.com/2013/02/07/us/drones-classified-document/index.html?hpt=hp_t2

It’s no secret that people in the public eye are under a level of scrutiny that most regular folks cannot fathom. Yet, one cannot help but ask, ‘what’s behind the constant bashing of our country’s first lady?’

After a week of intense scrutiny leading up to her superbowl performance, Beyonce has returned the torch of torture over to Michelle Obama. A high school football coach by the name of Bob Grisham has been suspended from his current post for calling the first lady a ‘fat butt’. He made the comment in response to students while discussing his school’s low-calorie lunches.

Grisham’s criticism is the latest in a string of stinging comments against Obama. First, it was the arduous assessment of her new hairdo by some. Then, it was the slamming of her inaugural wardrobe by others. Nevermind the chiseled arms and her relentless pursuit of improving kids’ health across the nation. She is now being negatively criticized for her body.

Since the beginning of the year, it seems that critics have come out stronger than ever against two of our most prominent women of color. One cannot help but consider than no other female of a different hue has recently stood in the face of such backlash for completely frivolous reasons. The national platform both Beyonce and Michelle Obama have been given is also a curse. Every little move made, even with the best intentions, draws public outrage.

What’s next? Soon, they’ll be getting cited for breathing incorrectly. Give me a break!

Follow Britney Spear on Twitter @missbritneysp 

Michigan Gov. Rick Snyder will become the sixth Republican state chief executive to push for the expansion of Medicaid under President Barack Obama's health care reform law Wednesday.

Snyder is holding a press conference with interest groups representing the health care industry and senior citizens, the Detroit Free Press reported Wednesday. (h/t The Hill). To enact the Medicaid expansion, Snyder will have to win over the Republican-led legislature.

The Detroit Free Press outlines the stakes:

The expansion will allow roughly 470,000 more uninsured low-income Michiganders to be covered by Medicaid. Currently 1.9 million people received Medicaid benefits. But under the Affordable Care Act -- often referred to as Obamacare -- nearly half a million more people will become eligible for the assistance.

Snyder's announcement comes a day after Ohio Gov. John Kasich (R) announced his support for the Medicaid expansion and Pennsylvania Gov. Tom Corbett (R) said he opposes broadening the program. Including Michigan, the chief executives of 21 states and the District of Columbia back the Medicaid expansion and the Republican governors of 11 states don't plan to move ahead.

The health care reform law seeks to extend Medicaid to anyone earning up to 133 percent of the federal poverty level, which is $15,282 for a single person this year. The federal government will pay the full cost of covering newly eligible people on Medicaid from 2014 to 2016, then will scale back funding to 90 percent in 2022 and later years.

The Congressional Budget Office projects that 12 million people will gain coverage through Medicaid or the Children's Health Insurance Program, a related benefit, by 2022 as a result of the law, according to a report issued Tuesday.

The Supreme Court ruling that upheld the health care reform law gave states the option of refusing to open their Medicaid programs to more poor people. If every state were to participate in the Medicaid expansion, it would extend coverage to 17 million people, the Congressional Budget Office predicted in a March 2012 report.

UPDATE:

Snyder's office published information about his proposal to expand Medicaid Wednesday. From a press release:

"This makes sense for the physical and fiscal health of Michigan," said Snyder, who studied the issue thoroughly before arriving at his decision. "Expansion will create more access to primary care providers, reduce the burden on hospitals and small businesses, and save precious tax dollars. It also puts Michigan rather than Washington in the driver's seat in terms of implementation, which allows us to better address Michigan's specific needs."

Expanding Medicaid to cover up to 133 percent of the Federal Poverty Limit means that routine and preventative health care will be provided to about 320,000 Michiganders in the first year. More than 470,000 will be covered by 2021, reducing the amount of Michigan's uninsured by about 46 percent.

Creating access to primary care providers reduces more costly emergency room visits and decreases hospitals' uncompensated costs. A recent study estimates that Michigan will save $351 million by 2022.

More than $20 billion will flow into Michigan through 2023 by leveraging the federal funds made available through the Affordable Care Act. In addition, the state's General Fund will see $1.2 billion in savings through 2020.

Like Kasich and Arizona Gov. Jan Brewer (R), Snyder will seek to protect his state from lower federal subsidies down the line. Kasich and Brewer proposed creating a "trigger" that would scale back the Medicaid expansion if Congress cuts funding.

Snyder takes a different approach. Anticipating that the Medicaid expansion will save Michigan money, Snyder wants to earmark half those savings into a fund until 2020 that would be tapped when the federal government's share of the financing gets smaller in future years under Obamacare.

The press release also lists the organizations endorsing Snyder's plan: AARP Michigan, Michigan Association of Community Mental Health Boards, Michigan Association of Health Plans, Michigan Health and Hospital Association, Michigan Osteopathic Association, Michigan Primary Care Association, Michigan State Medical Society, and the Small Business Association of Michigan.

Snyder's office released a fact sheet about his Medicaid expansion initiative.

http://www.huffingtonpost.com/jeffrey-young/michigan-medicaid-expansi_b_2631367.html?utm_hp_ref=detroit&ir=Detroit 

WASHINGTON (CNNMoney)

The U.S. Postal Service plans to stop delivering and collecting letters and other first-class mail on Saturdays beginning Aug. 5, although packages will continue to be delivered.

It would mark the end of an era for the agency, which started Saturday delivery in 1863.

Tired of waiting for Congress to help, the Postal Service on Wednesday unveiled its plan, which is expected to save $2 billion a year. It's a drop in the bucket, compared to the $16 billion loss the organization reported for 2012.
"It's a responsible decision. It makes common sense," said Patrick Donahoe, postmaster general and CEO of the postal service.

The move would impact 22,500 jobs, Donahoe said, which he plans to achieve without resorting to layoffs. Rather, he would eliminate overtime, offer buy outs and rely more on the part-time workforce. There will be no changes to post offices that are currently open on Saturday and mail will continue to be delivered to PO boxes.

The key culprit for the Postal Service's woes has been a 2006 congressional mandate, under which it has to pre-fund healthcare benefits for future retirees. The USPS has been borrowing billions of dollars from taxpayers to make up for the shortfalls.

At the same time, technological advances have led to a decline in first-class mail, which most consumers use to pay bills and stay in touch.

The situation turned particularly dire last year -- the agency twice defaulted on payments totaling $11 billion, and it exhausted a $15 billion line of credit from the U.S. Treasury.

In the past year, it has cut hours at thousands of post offices -- some are open for only two hours a day. It has also merged some of its plants, which led to a 28,000 drop in its workforce through retirements and departures by employees who couldn't relocate or take up other postal jobs.

Some 80% of the expected savings will come from eliminating overtime, Donahoe said. The rest of the savings will come from cutting part-time hours and retirements.

However, there are questions over whether the Postal Service has the authority to quit delivering letters on Saturdays.

Previously, the agency had said it needs Congress to change current law to do so.

Read more: http://money.cnn.com/2013/02/06/news/economy/postal-service-cuts/index.html?hpt=hp_inthenews