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Back to 3rd Qtr News
Unraveling Postal Increase
Summer 2005
Direct Marketers nationwide will begin planning next year's marketing budget and many will be keeping a close eye on that postage figure.
True, the United States Postal Service did file for a rate increase with the Postal Rate Commission. And rate could rise as early as January 16 at a rate around five percent.
Normally rate cases last about 18 months, so talk of such a short rate case is significant. However, there are a number of factors that could influence the implementation date.
For one, the USPS is doing better than postal officials expected, so they may be able to reduce the proposed increase or hold off until late 2006.
Never the less, the USPS deadline to meet its $3.1 billion obligation to an escrow account enacted under the Postal Civil Service Retirement Act of 2003. The USPS is the only government agency with such obligations.
Postal supporters in Congress are trying to reverse this obligation, but the White House opposes such effort. In fact, House Majority Whip Roy Blunt (R-MO), considered postal reform on of the "top priorities" for the summer session.
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