Tuesday, January 28, 2014

Postage Stamp Increase

Staff Writer, DL Mullan
Community Interest / Government

Don't send any letters through the mail unless they are your Forever Stamps. The cost of postage went up from $0.46 for First Class to $0.49 on January 26th.
The price hike comes after the agency's regulator gave the green light back in December to keep up with inflation and recoup losses incurred during the Great Recession, when people drastically pulled back on mail. 
The Postal Regulatory Commission also said the Postal Service can't allow the hike to last more than two years, or raise more than $2.8 billion.
Does the Commission not understand the gravity of the situation or how Congress has placed this financial impediments on the Postal Service:
The agency said in November that it lost $5 billion in the latest fiscal year ending Sept. 30. That's far less than recent years, but that's on top of years of losses.
The agency has exhausted a $15 billion loan from taxpayers to make up for shortfalls. 
Much of its cash problems stem from a congressional mandate to make annual $5 billion payments for future retiree health care benefit

Source: CNN