Postal Stamp

Postal Stamp

Rate Boost Rejected For Postal Service As Cuts Mount

A 5.6 percent postal rate increase requested by the United States USPS was turned down Thursday by the Postal Regulatory Commission. Raising the price of a first class stamp from 44 to cents was one of the increases the postal service said was necessary because of the recession. The commission was not confident and said poor management, not external factors, was the source of the agency’s troubles.

Postal rate boosts a yowl for help

All the money the Postal Service has is going down the drain. By 2020, a $238 billion deficit is expected to happen. Bloomberg reports that the USPS has asked for the stamp price boost along with a 7 % increase on packages used to ship merchandise for instance books or videos. It also asked that parcels under a pound get a 23 % increase. The Postal Service hasn’t increased its rates in about two years. For the first time since 1863, the USPS has requested to end Saturday postal mail delivery from Congress.

U.S. Mail altering

The USPS was left out of a temporary expending measure to finance federal programs through early Dec that passed the Senate on Wednesday and cleared the House Thursday. Based on the Washington Post, the USPS owes a $5.5 billion payment that is required to pre-fund retiree medical benefits by law. Democrats tried to postpone this payment but Republicans would not have it. The Postal Service has managed to cut $10 billion in expending since 2008. It plans to let those retiring leave without hiring any person new. Based on the Office of Management and Budget, mail service will continue to be available. The USPS and Congress are working together to make one thing happen to make sure it is still available.

Why the postal price boost was refused

The Postal Service lost $3.8 billion in 2009. The Associated Press reports that Ruth Goldway, chairman of the commission, said the proposal was rejected more for the presentation than the information. At a news conference she said the need for a rate increase was not due to the recession, as the suggestion said, however was because of long-term structural troubles that must be addressed. The rejection originated from a variety of consumer groups, small businesses, charities, utilities, national retailers, banks and the Affordable Mail Alliance.

Articles cited

Bloomberg

bloomberg.com/news/2010-09-30/u-s-postal-service-denied-another-rate-increase-by-regulatory-commission.html

Washington Post

washingtonpost.com/wp-dyn/content/article/2010/09/29/AR2010092906645.html?wpisrc=nl_pmheadline

Associated Press

google.com/hostednews/ap/article/ALeqM5iqbZ05-vr6nAfjJzyIXr_d1k26DwD9IIDJ4O0?docId=D9IIDJ4O0