Postal Service OKs increase to 34 cents

By RANDOLPH E. SCHMID

Associated Press

WASHINGTON – It’s official: It will cost a penny more to mail a letter starting Jan. 7.

The increase to 34 cents was accepted by the Postal Service’s board of governors today. It will be accompanied by changes in many other rates, including international mail.

But the wide-ranging set of rates approved last month by the independent Postal Rate Commission fell well short of what the post office wanted, prompting the agency to adopt the new rates under protest.

“We will implement the recommended decision, but are returning it to the commission for further consideration,” said Board Chairman Einar V. Dyhrkopp.

“We cannot accept a situation that threatens the ability of this organization to provide the levels of service that the American people expect and deserve,” he said.

Postmaster General William Henderson said the cuts made by the rate commission reduced the post office’s planned contingency fund by $1 billion.

Rate commission general counsel Stephen Sharfman said the commissioners were waiting to receive and read the post office’s response.

The post office is currently in arbitration with three of its largest labor unions. It expects to need the added income to pay higher salaries and to meet other rising costs, including fuel and equipment.

Also at today’s meeting, Richard J. Strasser Jr., the post office’s chief financial officer, reported that the agency finished fiscal 2000 with a $199 million loss.

While the independent rate commission agreed with the post office’s requested 34-cent first-class rate, it reduced the agency’s proposed increases in other areas.

For example, under the rates recommended by the commission, a letter will cost 34 cents for the first ounce, but the second ounce will cost 21 cents, a penny less than the current price. There were cuts in other rate requests also.

Dyhrkopp said the resulting price will not provide sufficient revenue for the agency.

The post office had been in the black for several years, but the request for a rate increase had been made in January in anticipation of a small loss in 2000 and a larger one in 2001.

Changing postage prices is a complex process, beginning when the postal service sends a request to the rate commission. The commission then holds hearings and has 10 months to reply with a series of its own recommendations.

The post office can then accept that set of rates, accept them under protest and ask for reconsideration or reject them. The postal governors can overrule the rate commission and impose their own rates, but only if they vote unanimously to do so.

While the post office contends that it needs higher rates to cover its costs, price increases are never popular with customers.

The Direct Marketing Association promptly complained about the rising rates, calling on the post office to delay implementation at the least.

Jerry Cerasale, DMA senior vice president for government affairs, contended that the “decision by the governors to ask for an even larger increase will hurt American businesses and consumers as well as drive businesses away from the Postal Service in droves.”

He also appealed to the board of governors to rescind the Jan. 7 implementation date, contending that it will take at least 60 days to implement the change after businesses obtain new mail processing computer software.

Overall mail prices are rising by 4.6 percent, the post office said. The increases vary by type of mail. By law, each class of mail is required to cover its own costs.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

An American Robin picks a berry from a holly tree on Thursday, Feb. 13, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Calling all birders for the annual Great Backyard Bird Count

The Audubon Society will hold its 28th annual Great Backyard… Continue reading

A view of one of the potential locations of the new Aquasox stadium on Monday, Feb. 26, 2024 in Everett, Washington. The site sits between Hewitt Avenue, Broadway, Pacific Avenue and the railroad. (Olivia Vanni / The Herald)
Initial prep work for AquaSox stadium to start, with $200k price tag

The temporary agreement allows some surveying and design work as the city negotiates contracts with designers and builders.

The Joann Fabric and Crafts store at 7601 Evergreen Way, Everett, is one of three stores in Snohomish County that will close as part of the retailer’s larger plan to shutter more than half of its stores nationwide. (Aaron Kennedy / The Herald)
Joann store closure plan includes Everett, Arlington, Lynnwood locations

The retail giant filed a motion in court to close approximately 500 stores in the U.S.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

Lynnwood
Lynnwood police: 1 suspect in custody, 1 at large after attempted carjacking

Beverly Elementary School went into a precautionary lockdown Thursday afternoon. Numerous officers continue to search for the second suspect.

Candidates announce campaigns for Everett city council seat

Ryan Crowther, founder of the Everett Music Initiative, will challenge incumbent Paula Rhyne for the District 2 seat.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.