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Post office wants to raise stamp price 2 cents to 46 cents

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Post office wants to raise stamp price 2 cents to 46 cents
By Randolph E. Schmid, Associated Press Writer

WASHINGTON — The post office wants to increase the price of a stamp by 2 cents to 46 cents.The agency has been battered by massive losses and declining mail volume and faces a financial crisis.

 

Postal officials announced a wide-ranging series of proposed price increases Tuesday, averaging about 5%, and covering first class, advertising mail, periodicals, packages and other services.

 

The request now goes to the independent Postal Rate Commission which has 90 days to respond.

 

The boost comes as no surprise. Postmaster General John Potter said March 2 that a rate increase would be necessary for the agency, which does not receive tax funds for its operations.

 

The current 44-cent first-class rate took effect May 11, 2009.

 

While that change will be the most visible, rates for other types of mail will also go up, raising concern among business groups and nonprofit organizations.

 

Under the law, the post office is generally limited to increases no more than the rate of inflation — 0.9% for the year ended in May.

 

However, the agency is allowed to seek a larger increase in unusual circumstances. Potter said in March he planned to take that step.

 

"The projections going forward are not bright," Potter said then. But, he added: "All is not lost. ... We can right this ship."

 

The agency lost $3.8 billion last fiscal year despite cutting 40,000 full-time positions and making other reductions. It has continued to face significant losses this year.

 

The weak economy has sharply reduced mail volume as companies cut their advertising. At the same time there has been a significant drop in lucrative first-class mail, with more and more people turning to the Internet to communicate with each other as well as to receive and pay bills.

 

Postal officials also have proposed eliminating Saturday mail delivery as a means of cutting costs, a change that would require congressional approval.

 

Post office finances are also complicated by the requirement that the agency make annual payments to pre-fund future health benefits for retirees, something not required of other government agencies.

 

The postal inspector general contends that the Postal Service has been overcharged billions of dollars for retirement benefits for employees who worked for the old Post Office Department before it was converted to the Postal Service in 1970.

Entry #2,818

Comments

1.
NBey6Comment by NBey6 - July 6, 2010, 2:40 pm
What in the hell do they need to raise it for again, it's barely been a year since the last one. Nobody hardly uses the mail service anyway, so they shouldn't get an increase again!!!!!

:-(
2.
truecriticComment by truecritic - July 6, 2010, 4:14 pm
NBey6 because mailmen and mailwomen have a union and they get pay raises - they should lower their wages.

And the other reason, they lost a lot of revenue just because of the fact you stated - nobody uses them anymore.   They need a minimum amount of mailpeople to distribute the mail. Whether they put 1 piece of mail into your mailbox or 20 pieces.

1*.44 = 44¢ "income" per delivery.
20*.44=$8.80 "income" per delivery.
I think you can understand the "loss" of income with that example.

Time to stock up on Forever Stamps!
3.
NBey6Comment by NBey6 - July 6, 2010, 4:16 pm
They should have to "make due or cut back' just like everyone else.
4.
hoping2winbigComment by hoping2winbig - July 6, 2010, 5:03 pm
In this small town i live in the P.O. brought in a postmaster from another town , he has been living in a motel for past 3 yrs at the rate of 1000, a mnth . Rediculous , because they could find him an apt or small house for 1/2 that cost or less . WASTE is what it is . The post office workers complain that they no longer can have the clear wrapping tape they usually have and other small stuff like that , they actually buy it & pay for it themselves . I wonder if this 2 cent raise for stamps will help them get their tape back LOL !
5.
NBey6Comment by NBey6 - July 6, 2010, 5:11 pm
Thanks for your comments, truecritic and hoping2winbig.

^_^

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