Monday, Sep. 17, 1984
Putting In Their 2
When the U.S. Postal Service absolutely, positively has to increase its revenues, the process it must go through is not exactly overnight delivery. First its eleven-member board of governors makes a proposal, which is then considered by an independent rate-review commission. The commission's findings in turn are subject to renegotiation by the board if the two groups differ. Last week the middle step in that bureaucratic do-si-do occurred. The commission recommended a package of rate hikes that will almost certainly boost the price of a first-class postage stamp from 20-c- to 22-c- early next year. A 1-c- hike in the price of a postcard, to 14-c-, was also suggested. The first general rate increases since 1981 apparently will include an average 13% climb in the cost of bulk classes of business mail.
The commission's recommendation was somewhat less than the amount sought by the board, which wanted to raise the price of a first-class stamp to 23-c-. The board can try to live within the means suggested or seek to get the decision changed. Though the Postal Service has recorded surpluses for the past two years, Postmaster General William Bolger warned that an additional $3.2 billion in new revenues will be required to offset rising costs next year. One factor sure to influence the board's eventual decision is the outcome of an acrimonious dispute with postal unions, which have been working without contracts since July 21.