The U.S. Postal Service has proposed a postage stamp price change to take effect on 2 January, 2011. The cost of first-class postage stamps will rise from 44 cents to 46 cents, but first-class Forever postage stamps purchased prior to the increase will be good for mailing one-ounce letters after the rate change takes place.
Cost of Stamps Will Rise - New Postage Rates
The U.S. Postal Service Governors have recommended an increase in postage stamp prices. The recommended increase is 2 cents, making the new cost of first-class postage 46 cents. The price of a postcard will also increase 2 cents to a new rate of 30 cents. Prior to the recommended price increase taking effect, it must be approved by the Postal Regulatory Commission. If approved, the new rates will begin on 2 January, 2011.
In the 18 October, 2010 issue of Linn's Stamp News it was reported that the Postal Regulatory Commission, for the first time in its history, rejected the requested price increase. The USPS may appeal the decision to the U.S. Court of Appeals.
Faced with a large drop in mail volume due to the recession and increased internet usage, the U.S. Postal Service is projecting a budget deficit of nearly $7 billion for the 2011 fiscal year. The deficit, occurring despite constant cost-cutting measures implemented since 2001, will be trimmed by approximately $2.3 billion with the recommended increase.
According to a press release on 5 August, 2010, the USPS financial situation is made more dire by a unique obligation to retirees. The Postal Service, as required by the Postal Accountability and Enhancement Act of 2006, must pay $5.4 billion to $5.8 billion annually for retiree health benefits.
The proposed rate increase - the first in nearly two years - will not completely eliminate the budget deficit for the USPS, but Postmaster General John E. Potter said he does not want customers to face large price increases. Instead, he announced that the price increase is only a single piece in a series of measures undertaken by the USPS in an attempt to reduce their deficit and bring the Postal Service into a sound financial state.
Forever Postage Stamps
In April, 2007, the United States Postal Service released the first-class Forever stamp with a Liberty Bell design. The Forever stamps were intended to ease the transition for mailing letters when postage rates are increased. The stamps are designed with the word "forever" in place of a postage amount to reflect their status as a stamp that can be used to mail first-class letters regardless of future price changes.
Consumers can always buy postage stamps of the Forever variety at the same price currently in effect for first-class stamps, and those stamps will maintain a postage value equal to the current first-class rate on the day of use.
As an additional aide to consumers during postage rate changes, the USPS issues smaller denomination stamps. The current "price change" stamps are the 1 cent Tiffany Lamp and 2 cent Navajo Jewelry.
Holiday Evergreen Forever Stamps
A new design for the Forever stamp will be available as part of the first-class price increase. The new Holiday Evergreen Forever stamps will be available for purchase at all post offices in October, 2010 and will be sold at the current first-class rate of 44 cents. As with the original Liberty Bell Forever stamps, the Holiday Evergreen Forever stamps are valid for first-class postage "forever" - regardless of future price increases.
More Information From the U.S. Postal Service
For more information on the USPS budget shortfall and the measures being implemented to reduce this shortfall, interested customers may visit the U.S. Postal Service Newsroom.
