Postal Service Seeks to Hike Stamp Prices by 3 Cents - kcentv.com - KCEN HD - Waco, Temple, and Killeen

Postal Service Seeks to Hike Stamp Prices by 3 Cents

Posted: Updated:

(CNN) -- Mailing a letter would cost three cents more, or 49 cents, starting in January, under a Wednesday proposal by the U.S. Postal Service.

The price of sending a postcard would also go up by a cent to 34 cents. The rate hikes are expected to raise $2 billion for the cash-strapped postal service.

The Postal Service must first get the approval of its regulatory panel, Postal Regulatory Commission, before it can raise prices over the rate of inflation.

"Of the options currently available to the Postal Service to align costs and revenues, increasing postage prices is a last resort that reflects extreme financial challenges," the Postal Service Board of Governors Chairman Mickey Barnett said in a letter to customers.

The agency said it lost $740 million in the three months that ended June 30. During the same period last year, it reported a $5.2 billion loss.

So far, the Postal Service has lost $3.9 billion in the current fiscal year.

In 2012, the agency lost $16 billion.

Much of the problem stems from a congressional mandate to make annual $5 billion payments for future retiree health care benefits.

The requirement has been a major drag on the agency, which has exhausted a $15 billion loan from taxpayers to make up for shortfalls.

The decline in the volume of mail that most people send each year is also hurting. The Postal Service handled 37.9 billion pieces of mail between April and June, down from 38.3 billion in the same period last year.

In January, the Postal Service raised the price of a first-class mail stamp by 1 cent to 46 cents. That increase was allowed to go forward without the permission of the Postal Regulatory Commission because it reflected the pace of inflation.

  • Latest NewsMore>>

  • Six New GM Recalls of 717,950 Vehicles

    Six New GM Recalls of 717,950 Vehicles

    Wednesday, July 23 2014 5:33 PM EDT2014-07-23 21:33:54 GMT
    General Motors announced six more recalls today, totalling 717,950 newer-model U.S. vehicles for a variety of defects.That brings the number of GM recalls this year to 60, totaling 26.41 million vehicles.GM says it knows of three crashes and two injuries, but no deaths, linked to the new recalls.The automaker sees the latest round of call-backs as evidence it's continuing to strictly police itself on safety issues."These recalls signify how we've enhanced our approach to safety...More >>
    General Motors announced six more recalls today, totalling 717,950 newer-model U.S. vehicles for a variety of defects.That brings the number of GM recalls this year to 60, totaling 26.41 million vehicles.GM says it knows of three crashes and two injuries, but no deaths, linked to the new recalls.The automaker sees the latest round of call-backs as evidence it's continuing to strictly police itself on safety issues."These recalls signify how we've enhanced our approach to safety...More >>
  • Killeen Police Searching for Burglary Suspects

    Killeen Police Searching for Burglary Suspects

    Wednesday, July 23 2014 5:12 PM EDT2014-07-23 21:12:00 GMT
    Photo Courtesy Killeen Police Dept. Photo Courtesy Killeen Police Dept.
    Killeen Police are seeking the help of the community in identifying two men who broke into a local business. The burglary happened around 11:30 p.m. on Thursday, July 4th at the Jackson Professional Learning Center at 902 Rev. R.A. Abercrombie in Killeen.When officers arrived at the business an employee told them the learning center had been broken into. A television had been taken from the center and was later found outside of the building. Killeen Police describe the suspects as t...More >>
    Killeen Police are seeking the help of the community in identifying two men who broke into a local business. The burglary happened around 11:30 p.m. on Thursday, July 4th at the Jackson Professional Learning Center at 902 Rev. R.A. Abercrombie in Killeen.When officers arrived at the business an employee told them the learning center had been broken into. A television had been taken from the center and was later found outside of the building. Killeen Police describe the suspects as t...More >>
  • UPDATE: Crews Working to Repair 12-inch Water Line Break in Belton

    UPDATE: Crews Working to Repair 12-inch Water Line Break in Belton

    Wednesday, July 23 2014 3:28 PM EDT2014-07-23 19:28:19 GMT
    An 8-inch water line has ruptured on a construction site near Loop 121 and U.S 190. People in the Belton are being asked to conserve water for the next 24 hours. This is a developing story. We'll update this page throughout the day with new info as we receive it.More >>
    An 8-inch water line has ruptured on a construction site near Loop 121 and U.S 190. People in the Belton are being asked to conserve water for the next 24 hours. This is a developing story. We'll update this page throughout the day with new info as we receive it. More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KCEN. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.