First-Class Stamps To Cost 49 Cents As Of January 26, 2014

USPS service delivery truck in a residential area of San Francisco, California (Photo credit: Wikipedia)

WASHINGTON — Mailing a letter is about to get a little more expensive.

Regulators on Tuesday approved a temporary price hike of 3 cents for a first-class stamp, bringing the charge to 49 cents a letter in an effort to help the Postal Service recover from severe mail decreases brought on by the 2008 economic downturn.

Many consumers won’t feel the price increase immediately. Forever stamps, good for first-class postage whatever the future rate, can be purchased at the lower price until the new rate is effective Jan. 26.

The higher rate will last no more than two years, allowing the Postal Service to recoup $2.8 billion in losses. By a 2-1 vote, the independent Postal Regulatory Commission rejected a request to make the price hike permanent, though inflation over the next 24 months may make it so.

Read more: http://www.pottsmerc.com/general-news/20131225/first-class-stamps-to-cost-49-cents-as-of-jan-26

Postal Service Backs Off From Cutting Saturday Mail

USPS service delivery truck in a residential area of San Francisco, California (Photo credit: Wikipedia)

WASHINGTON — The U.S. Postal Service backed down from its plan to eliminate Saturday mail delivery because Congress barred it, officials said today.

But its governing board said it’s not possible for the financially ailing agency to meet cost-cutting goals without altering its delivery schedule.  Delaying “responsible changes,” the board said, only makes it more likely that the Postal Service “may become a burden” to taxpayers.

The Postal Service said in February that it planned to switch to five-day-a-week deliveries beginning in August for everything except packages as a way to hold down losses.

But that announcement was a gamble.  The agency essentially was asking Congress to drop from spending legislation the longtime ban on five-day-only delivery.  Congress did not do that when it passed a spending measure last month.

Read more:  http://readingeagle.com/article.aspx?id=467741

Flurry Of Campaign Ads, Holiday Mail Helped Post Office Some, But It Still Lost $1.3 Billion

English: U.S. Post Office Lincoln Branch in Madison Township near Mansfield, Ohio. This United States Postal Service branch closed its doors at 4:30 p.m. on Friday February 11, 2011 due to the fiscal crisis that the United States Postal Service is in as of 2010-2011 and the drastic decline in mail volume. (Photo credit: Wikipedia)

WASHINGTON — The U.S. Postal Service lost $1.3 billion in the final three months of last year, despite a blizzard of campaign advertising for the fall political elections and a big holiday mail and shipping season.

The loss announced Friday was far less than the $3.3 billion in the comparable quarter the previous fiscal year, but still showed the effects of a continued decline in first-class mailing as customers continue to flock to the Internet for emailing, bill paying and the like.

In releasing their financial report, postal officials pleaded anew with Congress to give them the flexibility to better manage the agency — including to free it from a mandate that they prepay for expected retiree health care costs.

Considering its operations alone, the agency actually made $100 million delivering the mail — earning $17.7 billion in revenue against $17.6 billion in operating expenses. But the health care funding and some other expenses pushed it to a net loss.

Read more:  http://www.washingtonpost.com/politics/postal-service-lost-13-billion-package-deliveries-up-mail-continues-to-migrate-to-internet/2013/02/08/3b00ca50-720d-11e2-b3f3-b263d708ca37_story.html?hpid=z3

Postal Service Reports Record $15.9 Billion Annual Loss

USPS service delivery truck in a residential area of San Francisco, California (Photo credit: Wikipedia)

WASHINGTON – The struggling U.S. Postal Service on Thursday reported an annual loss of a record $15.9 billion and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in payments to avert bankruptcy.

The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year.  Having reached its borrowing limit, the mail agency is operating with little cash on hand, putting it at risk in the event of an unexpectedly large downturn in the economy.

“It’s critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health,” said Postmaster General Patrick Donahoe, calling the situation “our own postal fiscal cliff.”

Read more: http://readingeagle.com/article.aspx?id=428549