Taxpayers Lose $90M to Produce Coins
Taxpayers lost $90.5 million on the production of pennies and nickels in the fiscal year 2014, according to a U.S. Mint report.
The report said the unit cost for pennies remained above face value for the ninth straight fiscal year.
“By keeping indirect costs down in the face of increased demand, fixed costs were spread among more units,” the U.S. Mint’s 2014 Biennial Report to the Congress said.
“The unit cost for both pennies (1.7 cents) and nickels (8.1 cents) remained above face value for the ninth consecutive fiscal year. Although there was higher demand, lower unit costs generated a smaller FY 2014 loss ($90.5 million) for these two denominations compared to FY 2013 ($104.5 million),” the report said.
In FY2014, the U.S. Mint said it increased production for all denominations and reduced metal costs for nickels, dimes, and quarters. However, the U.S. Mint said it is not able to reduce the production costs for pennies.
“There are no alternative metal compositions that reduce the manufacturing unit cost of the penny below its face value,” the U.S. Mint report said.