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Postal Service rate hike denied
bizjournals.com ^ | September 30, 2010 | Jeff Clabaugh

Posted on 09/30/2010 8:32:56 PM PDT by MamaDearest

The U.S. Postal Service is losing billions of dollars a year, but its regulator has denied a requested postal rate increase, saying the Postal Service failed to justify it.

The Postal Service had sought a rate increase on mailings averaging 5.6 percent, well above its statutory price cap, which is tied to the consumer price index.

“The commission finds that the Postal Service has shown the recent recession to be an exigent circumstance, but it failed both to quantify the impact of the recession on its finances and to show how its rate request relates to the resulting loss of mail volume,” said Postal Regulatory Commission Chair Ruth Goldway.

The commission did not buy the Postal Service’s claim that the recession is partly to blame for its current financial woes, saying the Postal Service’s cash flow problems would have occurred whether or not the recession happened. It also said a postal rate hike would not solve the Postal Service’s problems.

The Postal Service’s fiscal third quarter net loss swelled to $3.5 billion, and has warned its liquidity problems will reach critical levels by next year.

The Postal Service wants to end Saturday mail delivery and restructure payments to its retiree benefits funds to reduce expenses – both of which will require Congressional approval. It has already cut the equivalent of 36,000 jobs and plans to close hundreds of post office locations across the country, including eight targeted for closing in the District.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: postal; rate
I'll believe the post office is serious about saving money when they begin to make serious cuts in the number of supervisors at post offices across the nation. Mail carriers have had their routes changed, lengthened and messed with while there are numerous supervisors at larger post offices twiddling their thumbs and collecting fat (union guaranteed) paychecks.
1 posted on 09/30/2010 8:32:58 PM PDT by MamaDearest
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To: MamaDearest

kewl so will they strike, riot, or go on a shooting spree?


2 posted on 09/30/2010 8:38:31 PM PDT by the invisib1e hand (after your fifteen minutes are up you get a lifetime of ignominy.)
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To: MamaDearest
jPay is way ahead for millions sending letters to family members in institutions at $0.40/page letter. Why use U.S.Postal Service?
3 posted on 09/30/2010 8:44:26 PM PDT by Bronzy
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To: MamaDearest

Back in the day, we’d get our mail about 10 am. Now, some aren’t getting theirs until nearly 5 pm, too late in the day to act on any business.


4 posted on 09/30/2010 8:46:01 PM PDT by bgill (K Parliament- how could a young man born in Kenya who is not even a native American become the POTUS)
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To: bgill
Back in the day, we’d get our mail about 10 am. Now, some aren’t getting theirs until nearly 5 pm, too late in the day to act on any business.

I've lived with that late in the day delivery for years.

Two solutions:

Just resolve not to touch the mail until first thing the next morning, or rent a Post Office box and pick up the mail when you want it.

5 posted on 09/30/2010 9:10:19 PM PDT by lightman (Adjutorium nostrum (+) in nomine Domini)
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To: MamaDearest
I'll believe the Post Office is serious about saving money when it stops using first class mail to subsidize the cost of third class mail. I don't understand why I get three catalogs per day that go straight to the garbage delivered for a fraction of the actual cost, while first class rates continue to skyrocket. The Post Office has said that "every option is on the table." Here's an option to table: let's put Time magazine out of business once and for all by forcing them to actually pay the cost of delivery.
6 posted on 09/30/2010 9:10:19 PM PDT by FredZarguna ("I say we take off and nuke the entire site from orbit. It's the only way to be sure.")
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To: MamaDearest

I would submit that the problem here is quite different from what it seems.

The rate of increase of postal rates is linked, apparently by law, to the Consumer Price Index. They’e asking for an increase in excess of the CPI.

The CPI has been “massaged” over the years so much that it is honestly losing it’s meaning. It used to be that the CPI was calculated based on some presumed ordinary “market basket” of products, and the prices thereof.

Lately (like, the last couple of decades) the “market basket” has been so perverted by the process that it has lost all it’s meaning. Now they decide first what rate of inflation they want to report, and then they build a market basket of products that reflects that rate.

I simply don’t trust the “inflation rate” that we’ve being sold. Something is rotten.


7 posted on 09/30/2010 9:22:37 PM PDT by Ramius (Personally, I give us... one chance in three. More tea?)
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To: MamaDearest

The Postal Service needs to be revamped completely. Consolidation would be a start. Where I live there are about a half dozen post offices all within a few miles of each other. If they consolidated to 1 or 2 it still wouldn’t inconvenience that many customers. Do that nationwide and they could probably put themselves back in the black. Privatization is also an option. Today postage can be purchased on the Internet and packages shipped right from home with carrier pickups. Very little need to even go to the post office these days. I know, just one thing stands in the way. Unions.


8 posted on 09/30/2010 9:22:39 PM PDT by Wiggins
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To: Ramius

...”that we’re being sold”.

Dang. I wish we could edit those things. Typo there. Sorry.


9 posted on 09/30/2010 9:24:06 PM PDT by Ramius (Personally, I give us... one chance in three. More tea?)
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To: FredZarguna

I recently received a piece of first-class mail. The sender mailed it (postmarked) on a Sunday, and I got it on Monday, the very next day, even though I live in another state 600 miles away. Bizarrely, it was addressed correctly to my parents, who live in another state, and not to me. (My parents do not share my first name nor my house number nor my street name.) The mail originated very near their home. Ironically, my parents often complain that they only sporadically receive THEIR mail. This correspondence represented the first and only time I have received mail so addressed.

This level of “first class” service clearly costs lots of money. Scattering mail very quickly to random addresses in other states costs lots of money. Unfortunately, it doesn’t serve the intended recipient addressed on the letter, or, by extension, the sender of the correspondence.


10 posted on 09/30/2010 9:29:02 PM PDT by dufekin (Name our lead enemy: Islamic Republic of Iran, Mahmoud Ahmadinejad, Islamofascist terrorist dictator)
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To: Ramius

This is a first. Usually the PO gets what it asks for. Astonishing.


11 posted on 09/30/2010 9:32:29 PM PDT by Ciexyz
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To: MamaDearest
USPS has been running short on supervision for many years ~ the big cuts available are more systemic and will involve Congressional action to carry out.

Now, back to the Postal Rate Commission ~ we have a PRC saying they really don't believe the Greatest economic collapse since the Great Depression has anything to do with current USPS financial problems.

All I've got to say is that those people on the PRC who think that are as luney as Nancy Pelosi!

Yup, the USPS is not immune to the effects of the economic collapse.

When I read what the PRC mouthpiece person was saying I started laughing. What an idiot she is. I'm embarrassed. I've had cousins on that board and then total cretins come along like that ~ OH THE HUMANITY

12 posted on 09/30/2010 9:40:37 PM PDT by muawiyah ("GIT OUT THE WAY" The Republicans are coming)
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To: dufekin
MYSTERY SOLVED ~ mail forwarded from parents home to child's home somewhere else.

Yup ~ that'll happen sometimes.

The secret ingredient is that it's all done through the magic of computerization and robotics. Next time you move outta' your mom's house, don't submit a forwarding order ~ then this will never happen!

13 posted on 09/30/2010 9:43:12 PM PDT by muawiyah ("GIT OUT THE WAY" The Republicans are coming)
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To: MamaDearest

How about they build simple, functional post offices instead of these lavish extremely large buildings. Houses in really nice neighborhoods don’t look as nice as all of the new post offices around here.


14 posted on 09/30/2010 9:53:21 PM PDT by phalynx
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To: FredZarguna
Two different issues.

First, third-class mail is the most profitable mail to the Postal Service. The markup on third-class rates is much higher than first-class mail compared to cost incurred.

Second, putting Time magazine out of business by forcing them to pay the cost of delivery -- Time magazine is second class mail. Congress intends for it to have a subsidized rate (that is to say a lower markup than first and third-class mail). Unites the country and all that crap.

15 posted on 09/30/2010 9:56:49 PM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: Wiggins
Where I live there are about a half dozen post offices all within a few miles of each other. If they consolidated to 1 or 2 it still wouldn’t inconvenience that many customers.

Sadly, that can take an act of Congress.

16 posted on 09/30/2010 9:58:01 PM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: muawiyah
I've had cousins on that board

And had a career in the Postal Service. Are the two related? Who have you had on the board, pray tell?

17 posted on 09/30/2010 10:01:21 PM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: MamaDearest

Privatize! Then rates will be set where the market demands.

At the very least, there ought to be different methods of mail delivery with different pricing options. Oops, that wouldn’t be “fair”.... just realistic.


18 posted on 09/30/2010 10:19:10 PM PDT by Pining_4_TX
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To: DeaconBenjamin
I've had cousins on that board

And had a career in the Postal Service. Are the two related? Who have you had on the board, pray tell?

And I have personal contacts in the Postal Service as well (long time service).

Bill introduced to protect postmasters, postal supervisors

Snip: From the National League of Postmasters web site:

“Senator Akaka D HI and Congressman Gerald Connolly D VA have both introduced a bill that would add language to title 39 that puts into law that postmasters and other supervisory personnel shall have a reasonable and sustainable workload and schedule. These bills both address the unreasonable overload that the Postal Service has placed on managers over the last several years. The bills would also clarify certain provisions concerning consultation and changes or terminations in certain proposals.- The League, along with Napus and Naps, supports these bills.”

19 posted on 09/30/2010 10:25:06 PM PDT by MamaDearest
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To: MamaDearest

This will undoubtedly be revisited, so get those forever stamps now.


20 posted on 09/30/2010 10:26:38 PM PDT by TBP (Obama lies, Granny dies.)
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To: Pining_4_TX
At the very least, there ought to be different methods of mail delivery with different pricing options.

A couple of months ago I had a package to send across the country. I asked the clerk at the postal store (not the post office) to let me know the least expensive way to send the package between UPS, Fedex and the USPS. The winner was Fedex (by a large amount and included insurance) and the service was superb. Before this I would have taken it for granted that the post office was the least expensive.

21 posted on 09/30/2010 10:30:20 PM PDT by MamaDearest
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To: TBP
This will undoubtedly be revisited, so get those forever stamps now.

We can count on that. I plan to buy some Mother Teresa stamps for inclusion on Christmas cards this year.

22 posted on 09/30/2010 10:32:39 PM PDT by MamaDearest
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To: Ciexyz
This is a first. Usually the PO gets what it asks for. Astonishing.

There is a reason that this was denied, trust me on this. I work for the USPS, and it didn't surprise me one bit. The Board of Governors rejecting Post Master General Potter's request for a rate increase may have been a first, but it was well-deserved...

the infowarrior

23 posted on 09/30/2010 10:55:33 PM PDT by infowarrior
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To: muawiyah

But I actually never lived at my parents’ current address and never submitted an order to forward my mail (or someone else’s mail) from there to anywhere else.


24 posted on 10/01/2010 5:05:52 AM PDT by dufekin (Name our lead enemy: Islamic Republic of Iran, Mahmoud Ahmadinejad, Islamofascist terrorist dictator)
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To: infowarrior

Well, fill us in.
Historically when the Post Office asks for an increase, it happens pretty quickly. Given that we have marxists running the show, this makes no sense.


25 posted on 10/01/2010 5:13:25 AM PDT by Texas resident (Outlaw fisherman)
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To: dufekin
But you never lived at the house they're presently living in. On the other hand they moved there from somewhere else and you lived there, right?

The current automated system "catches up".

Years ago you'd see situations where someone moved more than once in a short period, or had moved with an individual order from a house where other people moved from later ~ you could end up with all sorts of yellow tags pasted all over a piece of mail reflecting all of that.

Today the computer system takes care of all that, then prints the information in invisible ink on the face (or back) of a letter.

Neat stuff eh?!

You were no doubt thinking there were human beings handling your mail.

26 posted on 10/01/2010 6:13:36 AM PDT by muawiyah ("GIT OUT THE WAY" The Republicans are coming)
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To: Texas resident
Has to do with hiring former postal employees as highly paid contractors. There was an audit recently of the USPS where this came to light, after the abrupt resignation, under a cloud, of the No. 3 person at L' Enfant Plaza earlier this year. Audit found some couple thousand questionable contracts to former postal employees, running well into the multimillion dollar range.

Giving Potter his requested rate increase under those conditions was basically out of the question...

the infowarrior

27 posted on 10/01/2010 9:13:53 AM PDT by infowarrior
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To: infowarrior

Makes sense.

Thanks mucho.


28 posted on 10/01/2010 11:37:55 AM PDT by Texas resident (Outlaw fisherman)
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