Friday January 30, 2009
Postal Rate Increase
Many of you have asked about the recent rate increases involving the U.S. Postal Service (USPS). I share your concerns about the impact of those increases on our personal budgets and on small businesses which rely on mail shipments.
On Monday, May 14, 2007, the cost of a first-class stamp will rise from 39 cents to 41 cents. That means you may continue to use your current 39 cent stamps for Mother’s Day cards. For any remaining 39 cent stamps, you can purchase 2 cent stamps to be added to cover the cost increase. A full listing of the new postal rates, including first class, priority and express mail is included below.
The Postal Service has also begun selling the “Forever” stamp for 41 cents each. Such stamps will be good for all future first class mailings, regardless of what the cost of a first class stamp may be raised to in the future.
There is little doubt the USPS faces increased costs with the additional of two million new addresses every year. These service adjustments come as the Service faces increased competition from e-mail, facsimiles, and online bill paying.
The Postal Service has not used taxpayer dollars since 1983 to support operations. Now, the Service must rely solely on revenue from the sale of its products and services to fund its operations.
Last year, I joined with other members of Congress to pass the Postal Accountability and Enhancement Act (PAEA). The Act requires the Postal Service to report more of its financial and operational details, but also allows for more flexibility. It included transparency language ensuring that “competitive” services are differentiated from “market-dominant” services. An escrow account was replaced with a Postal Service Retiree Health Benefits Fund.
As the son of a former postmaster in Idaho, please rest assured that I will remain committed to ensuring that the USPS remains an institution synonymous with responsibility and reliability. The Service needs to have the tools it needs to provide the highest level of service possible, at the best price for ratepayers.
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