ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, January 4, 1997 TAG: 9701060033
SECTION: NATIONAL/INTERNATIONAL PAGE: A-3 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
WHILE THE 32-CENT STAMP will likely be with us for the rest of this year, many say a 2-to-3-cent increase is coming.
PENNY FOR YOUR THOUGHTS? Writing them down and mailing them may cost 2 cents to 3 cents more next year.
The U.S. Postal Service seems likely to take the first steps this year toward raising stamp prices.
There's been no announcement. Indeed, Postmaster General Marvin Runyon said last month that the agency's 1996 profit ``reinforces our commitment that there will be no general rate increase, at least through 1997.''
On the face of it, that was good news for mailers. But the one-year promise was quite a change from Runyon's speech earlier in the year in which he said, ``We are going to do everything we can to keep stamp prices steady until the next century.''
And an internal postal memorandum says that, while Runyon does not want to raise rates next year, a decision will have to be made by this March, with a possible increase of ``a penny or two.''
In fact, the mailing industry expects the post office to apply this year for a rate increase to take effect in 1998.
``I look for it in the time frame of June to August,'' said John Haldi, economic consultant to the Alliance of Nonprofit Mailers.
Business Mailers Review suggests a filing for a rate increase might not come until October if the post office has strong profits in the first half of this year.
``It's likely the service will propose a 35-cent stamp,'' the review speculated, a 3-cent increase from the current rate.
And John Ward, postal vice president for marketing systems, has told an influential trade group that a filing for a rate increase seems likely in the latter half of this year.
The current 32-cent First Class rate took effect Jan. 1, 1995. Since then, the post office has recorded record profits of $1.8 billion in fiscal 1995 and $1.6 billion in the fiscal year just ended.
But rising costs are projected to cut the profit to $100 million in 1997.
LENGTH: Short : 48 linesby CNB