Inside Iowa State
Mar. 20, 1998
Budget keepers: Plan for postal rate increases
In May, the U.S. Postal Service rate commission will determine rate increases expected to take effect in July. If approved, the rates could go up from 3.2 percent to as much as 18 percent, depending on mail classification.
Some of the highest increases are expected for non-profit bulk mailing rates. Budget planners also should be aware that another increase in non-profit rates is scheduled for October 1998. It will be the seventh and final phased increase aimed at offsetting reduced Congressional subsidies for non- profits.
Iowa State Printing Services encourages departments to take advantage of automation discounts for their bulk mailing. Those that have quality address lists and meet automation requirements have seen major savings.
Bulk mailers can contact Printing Services at 4-3601 for information on the steps that can help offset postal rate increases. Printing Services will be publishing its annual Postal Fact Sheet revision when rates are decided. Call 4- 3601 to be added to the mailing list for this fact sheet.
Some of the proposed rate changes include:
The chart below compares proposed rate increases for non- profit bulk mailings. Most Iowa State non-profit bulk mail goes at piece rates.
- First Class letters: 1-cent increase, no additional increase for additional ounce (overall increase 3.2 percent)
- Priority Mail: Flat rate increase of 20 cents (overall increase 7.4 percent)
- Standard A (formerly Third Class): Overall increase of 4.1 percent, with increases in piece rates and reductions in pound rates.
Standard A Non-profit bulk mail (proposed increases)
Letter-size per-piece rate current July'98 Oct'98
(% over current)
non-automated 13.5 cents 16 cents
automated 10.2 cents 11.9 cents
Non-letter (flat) per-piece rate current July'98 Oct'98
(% over current)
non-automated 19.8 cents 23.4 cents
automated 17.4 cents 18.5 cents
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