106.7 The Fan All News 99.1 WNEW CBS Sports Radio 1580

Post Office Seeks 3-Cent Stamp Increase

View Comments
(File: Getty Images)

(File: Getty Images)

Latest News

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

WASHINGTON (CBSDC) – The financially strapped Postal Service is asking for a 3-cent increase in the price of a first class stamp, raising it to 49 cents. The  chairman of the postal Board of Governors, Mickey Barnett, warned the agency is in a “precarious financial condition.”

The post office expects to lose $6 billion this year. Last year, the agency lost $16 billion.

The request for the increase in stamp prices must be approved by the independent Postal Regulatory Commission.

Media and marketing businesses say a big increase in rates could hurt them and lower postal volume and revenues.

Postmaster General Patrick Donahoe is urging lawmakers to take swift action on legislation to fix his agency’s finances. Without help from Congress, the agency expects its multibillion-dollar annual losses to worsen. He warned that the agency’s cash liquidity remains dangerously low.

Rep. Darrell Issa (R-CA), who chairs the House Oversight and Government Reform Committee which oversees the Postal Service, called the request “a desperate cry for help from an insolvent Postal Service.”

In addition to raising stamp prices, the USPS has suggested ending Saturday deliveries as a way to cut costs. But that proposal has met with resistance from Capitol Hill.

The agency last raised postage rates on Jan. 27th. At the time, the cost of a first-class stamp went up by a penny, to 46 cents.

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 1,556 other followers