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Locals may feel trickle down effect of U.S. Postal Service’s rate hikes

Although the cost of mailing a First-Class letter hasn’t been affected by the postage rate increase, residents may still see an increase in goods and services.

Sunday, May 20, 2001

Although the cost of mailing a First-Class letter hasn’t been affected by the postage rate increase, residents may still see an increase in goods and services.

The potential increase in cost may stem from the amount businesses and government agencies using Express Mail and Certified Mail have to pay to send those items via the post office. With the increased cost of postage, the consumer may pay the expense the businesses will incur.

County Auditor Ray Dutey said his office sends certain items certified about twice a year. He said the increase will affect the budget in some ways.

"The way the county’s budget is, every little bit adds up," Dutey said.

The reason for the rate hike, the Postal Service explains, is based on budgetary reasons. The Postal Service delivers about 200 billion parcels of mail a year and relies on the money charged for postage to keep the agency running.

Since the Postal Service operates without tax dollars, money must be generated through the products the agency sells.

The Postal Service defends its rate hike using common economic principles. In a memo, the Postal service responded to the rate hike stating, "like all businesses, the Postal Service must periodically raise the prices it charges for its services to cover increases in the cost of doing business and to sustain high quality universal service."