Written by Your 5News Team
Last updated on October 12, 2012 @ 7:59PM
Created on October 12, 2012 @ 6:16PM
Pretty soon, it will cost you just a little bit more to mail a letter or send a package with the postal service. Starting January 27th, the new first class mail price will be 46 cents.
This could be the first of many changes designed to pay off the postal service's massive debt. The postal service can't raise stamp prices more than the rate of inflation. In addition to this one cent increase, they're trying to convince Congress to grant them the authority to raise prices by 5 cents.
The postal service has been struggling with debt and low cash flow for several years. The agency is expected to lose a record 15 billion dollars this year. They lost over 5 billion dollars in 2011, mostly because of a 6% decrease in revenue for first class mail.
Financial results are expected to be even worse when final figures for this fiscal year are released next month.
Two of the big reasons for that were the pair of payments they defaulted on to the treasury. Those payments totaled more than 11 billion dollars, and were supposed to go toward future retiree health benefits.
Without help from Congress, and price increases, jobs could be cut, post offices could close, and Saturday service cut.
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