New Postal Rate Increase Raises $3.1Billion For Unknown Purpose

[Cronus Protagonist]

FOR IMMEDIATE RELEASE
Contact: Media Relations 202-268-2155
November 14, 2005
News Release No. 05-097
www.usps.com

GOVERNORS APPROVE CHANGE IN POSTAGE RATES
New rates go into effect January 8

WASHINGTON - The Governors of the U.S. Postal Service today voted to accept the Postal Rate Commission's recommendations to increase most postal rates and fees by approximately 5.4 percent across-the-board to take effect January 8.

This rate increase - the first since 2002 - is needed to fulfill the requirement of a federal law passed in 2003. That law requires the Postal Service to establish a $3.1 billion escrow account, with use of the funds to be determined by Congress at a later date. Without this federal mandate, it would not have been necessary to raise rates in 2006.

SOURCE LINK: http://www.usps.com/communications/news/press/2005/pr05_097.htm

What would that money be used for, and why is it so important to raise the cash on the backs of postal customers?

Hmmmmmm.....

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[linazelle]

1. They are using that money for the war. A sneaky way of siphoning

off even more money than they already have to sink into the war. There was never a requirement to hold an escrow account for undisclosed purposes until Bush decided the postal service was a cash cow. Wake up America.

[Cronus Protagonist]

3. So you think this is a sneaky tax increase to fund the war?

I suspect it's worse than that. I suspect the money will be used for domestic spying on the mail system. Just a hunch, though.

:scared:

[linazelle]

6. I know that it is being used to fund the war. I doubt that spying

will take place as a result of the increase. That's a WHOLE 'nother issue.

[SPKrazy]

26. How do you "know" this is to fund the war?

and won't this fund the war for about 3 weeks?

[Tom Joad]

48. That does not make sense. 3 billion? Couldn't buy more than

a few dozen humvees. (ok, a bit more than that, but still a pittance for the war... the war costs that much every few days!)

could it be for increased fuel costs maybe?
sorry to destroy the fun of making up evil conspiracies where none are likely to exist.

[linazelle]

49. Bu$hCo will take every billion they can get. nt

[shraby]

2. What such a large escrow account? Hmmmmm

[Crazy Dave]

4. Did you know.....

about 7 - 8 years ago a mail carrier made $55,000 a year? At least that's what my hair cutter's boyfriend made back then. Why can't they find someone that will do it for $35,000 - $40,000 a year? It doesn't require a college degree or much brain work. I'm sure physically it can be a little demanding but an average construction worker doesn't even make half what the carriers make.

Shit! Some teachers don't even make that much and they've had a formal education, plus continuing education to stay certified.

[Cronus Protagonist]

7. This money has nothing to do with wages, nothing at all

It's to raise cash for an unspecified purpose. One wonders what purpose requires such a crippling increase in postal costs?

You raised a seperate issue - perhaps one that could use its own thread?

:)

[linazelle]

8. Did you know, that with inflation, 55,000 a year "then" equates to 30k?

I don't understand why people are so jealous of people who make a living wage.

[LostinVA]

11. Eating their own -- I agree

[Crazy Dave]

13. Not jealousy but....

I do think a school teacher's salary should be a higher "living wage" versus a mail carrier's.

BTW - My salary is higher than both :) (Teachers & Mail Carriers)

[LostinVA]

18. Then try to help get more for the teacher, not less for the carrier

I make under $30k and live in an expensive area, and I totally don't begrudge the carriers. Good on them. And, teachers should make more money. Hell, all of us should.

[Crazy Dave]

24. >>Hell, all of us should.

...on that I totally agree my friend. I was arguing with a repug co-worker today (a useless but daily chore) about the federal minimum wage which is a scam. As you stated, living in an expensive area versus someone across the nation living in a lower cost area, the same one-size-fits-all minimum wage is flawed. The states and even cities should be able to mandate their own living wages. You made a good point about inflation that applies the same to different areas of the country. $7 - $8 an hour minimum wage may be great in some areas but in states like California or New York City, it doesn't go as far.

[spooky3]

44. Cities can have higher minimum wages, and many do.

Some also have living wage laws.

[A Simple Game]

61. $7 - $8 an hour minimum wage may be great in some areas

No, it's not. It's not great anywhere, unless you are a high school student who just needs spending money.

[alarimer]

37. Are you kidding?

They deliver mail through all kinds of weather conditions, when normal people shoudln't be on the road. So they start paying less and then you stop getting mail in a reasonable time frame because you get the employees you pay for. Higher wages=better, more conscientious workers.

[SPKrazy]

28. the poster you responded to made a point

no education necessary for a wage that is likely above most teachers, nurses, etc.

good point I think

[LostinVA]

29. Not a good point at all -- an elitist point

I have a college education ans work in a profession and am sorely low paid. However, carriers work much harder than I do physically, although I probably do use more "brain power." Why does that make me better than them? It doesn't. I wish we both made a lot of money. Of course teachers should be paid more, but that's a very anti-labor/union point of view, to say another worker deserves less money than another.

[SPKrazy]

33. You get what you invest in yourself!

I can't help it if someone chose to be a mail carrier

but I disagree with your premise that no one deserves more money.

that's the point of getting an education to have a good job.

[girl gone mad]

32. It's a dangerous job..

and not a particularly fulfilling one.

I suspect postal wages are fair compensation, not inflated. I think UPS carriers make even more than USPS carriers.

[SPKrazy]

34. Cops have more dangerous jobs and get paid a lot less than that n/t

[Marie26]

41. Education

Postal workers are considered government workers, so you have to take an extremely difficult "Civil Service Exam" to get hired. In addition, workers have to take regular training on the new technology & memorize tons of tedious stuff like routing codes. It's a good job, w/good benefits, but it's not an easy job to get.

[4_TN_TITANS]

56. That's what I've heard too...

a friend of mine years ago said that postal exam was the hardest test he had ever seen. Believe it or not it takes some smarts to get a piece of paper from one end of the country to the other intact.

[nick303]

39. 55K "then" is 30K now?

might want to redo the math on that one

[ComerPerro]

53. That's what I'm thinking too

[LostinVA]

9. I wish they made even more than that

I would never, ever begrudge any WORKER (not CEO) the salary they make. I doubt beginning carriers make that, but even if they did: good for them. You should be trying to get teachers MORE money, not postal carriers less.

And, I suspect it takes a hell of alot more "brain work" and physical demands than you think.

And people wonder why labor rights in this country suck.

SOLIDARITY!

[Inland]

19. If they get me my mail in 2-3 days, at 39 cents, it's worth every dollar.

Seriously, I'm a huge fan of the postal service. Not because it's perfect, but what a value for fricken 39 cents! Door to door, anywhere in the US!

[Cronus Protagonist]

22. I'm a fan too, but this money isn't going to the Postal Service

It's been earmarked for "unspecified purposes" and I bet you a dollar it's not for the US Postal Service.

[Cocoa]

20. postal jobs start at less than $30,000

55,000 sounds like 15+ years of service.

[LostinVA]

30. That's what I figured.

[Maureen54]

36. Postal work

A postal worker maybe can make the $55,000 yearly, but that's with many hours of overtime. It is an extremely demanding job, both physically and mentally and with very little reward and the administration that is brutal!
Also you're implying that a postal worker doesn't have a college degree, just because the job doesn't require one. Many postal workers do have degrees and for various reasons stay with the postal service. Further they ( the workers ) will not see a dime of the increase in stamps. They have received only a 1% raise yearly for many years now.

[earth mom]

46. What, are you jealous?

FYI-the post office is self supporting and all wages and operating expenses come from the money generated by postage. Postal employees are UNION WORKERS and their union takes very good care of them! :applause:

ALSO-If more employees in this country were protected by strong unions then this country and it's citizens would be a helluva lot better off in more ways than one!!!

BTW-No doubt Bush would love to control and divert the money that the USPS generates. Too damn bad he can't touch it! :evilgrin:

[Name removed]

55. Deleted message

Message removed by moderator. Click here to review the message board rules.

[NoPasaran]

5. Obviously for a neferious purpose...

Many people don't realize that one of the components of the sticky stuff on the back of postage stamps is a substance called...gum arabic. And just where do you suppose gum arabic comes from??? While we've all been focused on oil and terrorism and WMDs the neocons have been plotting to corner the market in gum arabic. Now, when the Chinese decide to call in their loans, the stamps will fall off the envelopes and the collection notices will all be Returned to Sender: POSTAGE DUE!!!

Bwahhahhahhahhahhahah!

[Cronus Protagonist]

12. Sorry, but 37c/39c stamps are almost all self-sticking now

No arabic gum involved. And postage is due on the recipient, not the sender, and only if delivered. If the mail is returned for no postage, it costs nothing. Sorry to pee on your parade, but if you're going to joke about something this serious, please to try to make the premise work so the joke can land.

:loveya:

[MichiganVote]

10. Energy. As in gas to deliver the mail. Additional fees for airlines.

Expect more of the same from other gov't agencies that rely on transportation.

[KittyWampus]

15. No, this isn't a raise to cover any expenses. It's mandated by Govt

and an escrow account.

[Cronus Protagonist]

17. Exactly. If it were for increased fuel costs, they would have said so

The government wants to use that money for something on the QT and I want to know what it is. The govmnt knows already or they wouldn't have mandated it, so I want to know. Perhaps someone will leak it?

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[Telly Savalas]

31. Which according to this article is to be used for the USPS retirement fund

http://www.sheridanpress.com/news-usps.htm

From some googling on a very empty stomach, it looks like what's going on is that a few years back it was projected that some screwy stuff would be going on with the USPS retirement fund, so Congress passed legislation requiring them to establish this escrow fund to cover for it. Not really a big deal, especially in comparison to real bullshit the GOP is foisting upon the nation.

[linazelle]

42. The retirement fund is no longer applicable. The escrow that

you are referring to was found to be overpaid, and therefore a surplus. Bu$hCo took the surplus and then passed a mandate that the escrow be maintained for their own nefarious purposes.

[Deja Q]

16. I must agree.

If it wasn't for our gas wasting usage, I'd be inclined to say "sneaky business afoot". But gas has gone up a lot since 2002.

2 cents each isn't terribly bad, all things considered. The last time, it went from 32 to 37 cents.

[Cronus Protagonist]

21. Fuel has been high for more than a year with no need for increases

The press release itself says that the increase is not needed other than to fund this unspecified-use fund. If it were for increase fuel costs, they would simply say so.

[MichiganVote]

27. Maybe. Maybe not. Gov't agencies do a lot of things w/o saying why.

Its possible that they are anticipating more hiring to "monitor" all that mail in the country. Protect us from terrorists. (sarcasm)

[MichiganVote]

25. Gas up 30cents today from noon to 5pm in W. Mich. ending at $2.50gall.

I think they are hedging their bets. And frankly...if you or I ran the place, we might do it too.

[KittyWampus]

14. Govt. will use escrow account for funding. I wrote about this before.

Before 9/11 the USPS was turning a profit... which went to the US Government. The USPS didn't keep the profit.

After 9/11 and all the money the USPS had to invest in safetly etc., the US Government gave them NOTHING BACK. No help at all.

[TahitiNut]

23. Yep. That $3.1 Billion will be in T-Bills ... financing the federal debt.

Funny how bulk rates don't go up nearly as fast as first class ... bills and birthday cards.

[bpilgrim]

35. probably to spy on us

they need every penny fight'n them evil doer's doncha know ;->

peace

[toymachines]

38. I was wondering wether USPS makes a profit

I was discussing this in the context of the postal monopoly on flat rate mail. So i guess they must, and 3.1 bil more now.

[morningglory]

40. Hey, they may need to sponsor some bike races or move some managers

around to expensive neighborhoods. Don't get me wrong. I am proud of Lance A.'s accomplishments and very glad he had a sponsor, but, please, this is just going to make people use UPS and email even more. Meanwhile they are buying advertisement time and cutting out home delivery.

[joe_sixpack]

43. That money is for

funding military retirement pay for postal workers. According to a Postal Supervisor that I talked to, the Post Office was recently mandated to provide funds for the retirement pay of its' workers who are retired military. According to him, they are the only federal office that is required to do that. I don't know if this is true or not, but I do know there are a lot of postal workers who are retired military.

[Nutmegger]

45. Maybe it's for anthrax prevention?

Have y'all even considered that??? :sarcasm:

[soothsayer]

47. The dear USPS has no clue how much it actually costs to deliver

a letter. The rate case is always a giant bundle of confused guesses at things. BUT....you still get a whole lotta' service for yer lousy little stamp, so just deal with it every 3 years, will ya?

[tavalon]

50. There are still postal customers?

Whouda thunk it!

[JVS]

51. It goes to R&D for drugs with which to flood America's Ghettos, duh!

[KatyaR]

52. Maybe they should use it for some customer service training.

I took a package to the Post Office yesterday, a return of clothing to LL Bean. It had a prepaid sticker on it; I only needed to "hand" it to someone for inspection because it was over the size and weight limits. I didn't seal the box because I knew they would have to open it up to see if I was mailing terrorists to Maine.

I wait in line 15 minutes, and when I finally get to a window and tell the clerk what I need, she stated that they didn't need to inspect the package. So I asked if I could have some tape to close up the box, and you would have thought I asked for a million dollars in gold. There was packing tape laying right there, and they refused to let me use it. Instead I had to use the one-inch tape that they had on the counter. They kindly offered me the opportunity to buy a roll of packing tape for $3.50.

So, realize this--they breaking their own laws and aren't inspecting packages, so anything could get through the mail. That and the fact that they don't give a CRAP about their customers, but boy, let's up our rates.

I bet you anything that money gets funneled to Iraq.

[arturoh2o]

54. You DO realize USPS is part of the government, right?

So, why exactly would you expect any better treatment than you get from your average bureaucrat?

Yet another reason why we need to limit the size of government. Add it to the quasi-infinite list.

[KatyaR]

60. Yeah, I should have used the sarcasm gif.

:sarcasm:

I just thought they might have had a little common courtesy.

[onefortheroad]

57. Does anyone actually use the USPS any more?

I don't.

[Cronus Protagonist]

58. I use the US Postal Service for all my business shipping needs

They're the only service that delivers right to the door or to a PO Box worldwide. They're also the cheapest and they're unionized and pay living wages.

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[greiner3]

59. The rich need a new tax break;

And it's on our backs they'll get it.