USPS, deep in the red, has fee increase turned down

A 5.6 percent postal fee increase requested by the U.S. Postal Service was turned down Thursday by the Postal Regulatory Commission. The increases, which the agency said were a consequence of the economic recession, integrated boosting a first class stamp from 44 to 46 cents. The commission rejected that notion and said the postal service’s difficulties are a result of its business practices.

Needing some aid for the postal price raises taking place

A deficit of $238 billion via 2020 is what is expected for the USPS meaning it is losing all its cash. Bloomberg accounts that the USPS has asked for the stamp price boost along with a 7 % increase on packages used to ship merchandise such as books or videos. It also asked that parcels under a lb get a 23 percent increase. The Postal Service has not increased its rates in about two years. Congress has gotten an interesting extra request from the Postal Service to save more money. It wants to, for the very first time since 1863, stop Saturday postal mail delivery.

U.S. Postal mail is in dire straits

The Postal Service 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 Thurs. A $5.5 billion payment was required from the USPS to pre-fund retiree medical benefits which could not be postponed by the USPS because Republicans didn’t want it to be, claims the Washington Post. The USPS has cut a $10 billion in spending. This cut has only been since 2008. It plans to let those retiring leave without hiring everyone new. The USPS and Congress are working together to come up with a plan to keep postal mail service alive and well, reports the Office of Management and Spending budget.

Why the postal price is not increasing

The USPS lost $3.8 billion in 2009. The presentation of the suggestion instead of the details was the reason why Ruth Goldway, chairman of the commission, thinks it was turned down, accounts the Associated Press. At a news conference she said the need for a rate increase was not due to the recession, as the proposal said, however was as a result of long-term structural troubles that have to be addressed. The Affordable Postal mail alliance fought with many others to reject this. The others involved were banks, national retailers, utilities, charities, small businesses and some consumer groups that got together.

Citations

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