Mail
Systems
Management Association New York Chapter
Box
4744, New York, NY 10185-4744
www.msmany.org
In The News…
The Postal
Regulatory Commission
formally responded to the US Postal Service's request to implement
postage price increases to generate nearly $4B of additional annual
revenue. The Commission agreed the increase is necessary for the USPS
to break even next year, and concluded that the rate designs for many
postal products can and should be improved.
However, the Commission identified calculations errors in the US Postal
Service's supporting financial documentation as well as conceptual
errors in proposed rates that allow the Commission to recommend smaller
increases (7.6%) than those requested by the Postal Service (8.1%).
The
Commission recommended a 2-cent increase in the cost of mailing a First
Class Letter and urged the Post Office to introduce a "forever" stamp
valid for first-class postage even when rates rise. The recommendation
to increase postage to 41 cents was a penny less than the postal service
had requested. The Commission recommended a 26-cent rate for post
cards, also a penny less than the Post Office had sought.
The
Commission also reported justification for the USPS request for new,
separate "shape-based" rate schedules.
The matter
now goes back to the Board of Governors of the Postal Service for a
decision on whether to accept the recommendation or ask the commission
to reconsider. If the governors accept the recommendations the new rates
could be implemented in 60 days.
To download the Commission's
recommendations, visit the Postal Regulatory
Commission website at
www.prc.gov or
visit the MSMA National website at www.msmanational.org.
The attached rate chart outlines the pricing structure
presented by the Commission to the USPS Board of Governors. (The
attachment is a ver large file, so you might want to review before
printing)We suggest you review this information carefully and plan your
strategy accordingly for likely implementation on May 6, 2007.
From:
Ron
Goglia, CMDSM
MSMA National President
Submitted by:
Joe Freeman, Chapter
President- 2/27/2007
