Going Postal Just Got More Expensive
Stock up on your forever stamps — first-class postage is increasing by 3 cents on January 26, 2014. The Postal Regulatory Commission voted to temporarily raise the price of postage in order for the United States Postal Service (or, USPS) to recoup revenue lost during the Great Recession. Sending a letter will now cost 49 cents.
“The Postal Service will be reimbursed for exigent losses that can be reasonably quantified. We have determined that amount to be $2.8 billion to cover the 25.3 billion pieces of volume lost between 2008 and 2011,” Commission Chair Ruth Y. Goldway said in a statement. “The funds will come from a rate surcharge that will last just long enough to recover the loss.”
Acting in accordance with the Postal Accountability and Enhancement Act of 2006, the Commission required USPS to show an exigent increase above the Consumer Price Index cap is necessary, and reasonable. In its 2-to-1 decision, the Commission determined that there was a need for the increases caused by the Recession, but disagreed with the Postal Service that the 3 cent boost should be permanent.