Penny America

As Postal Service Goes Broke, Commission Denies Price Boost

A postage boost of 5.6 percent was proposed by the United States of America Postal Service however denied by the Postal Regulatory Commission Thursday. Blaming a drop in mail traffic during the recession, the USPS wanted to raise the price of a first class stamp from 44 to 46 cents among other increases. The commission was not certain and said poor management, not external factors, was the source of the agency’s troubles.

Increase in postal rates needing help

The USPS, which projects a deficit of $238 billion via 2020, is about to go broke. Bloomberg accounts the Postal Service has asked for the stamp price boost along with a 7 % boost on packages used to ship merchandise for instance books or videos. It also hopes to get a rise on parcels under a lb. It is hoping that it will go up 23 percent. The rate increases would have been the first in two years for the Postal Service. Congress has gotten an interesting additional request from the USPS to conserve more cash. It wants to, for the first time since 1863, stop Saturday postal mail delivery.

United States Mail needs to work out some troubles

There will be no federal expending given to the USPS even with the spending measure that passed the Senate Wednesday and the House Thurs. The bill was passed to temporarily finance federal programs until the beginning of December. According to the Washington Post, the Postal Service owes a $5.5 billion payment that is needed to pre-fund retiree medical benefits by law. Democrats tried to postpone this payment but Republicans wouldn’t have it. Just since 2008, $10 billion in expending has been slashed from the Postal Service. Attrition is part of its plan. That’s how it wants to slashed the workforce. The USPS and Congress are working together to come up with a plan to keep mail service alive and well, accounts the Office of Management and Budget.

The reason why no boost within the postal price

The Postal Service lost a lot of money in 2009. About $3.8 billion was lost. According to the Associated Press, the proposal wasn’t turned down as much as the presentation of the suggestion was, states Ruth Goldway. Goldway is the chairman of the commission. The economic recession isn’t the reason why the adjust needs to be made, she said at a news conference. It needs to adjust because long-term structural issues were never addressed before now. The rejection originated from a variety of consumer groups, smaller businesses, charities, utilities, national retailers, banks and the Affordable Mail Alliance.

Data from

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

JC Penney’s – American Living