Where is the Future of Postal Rate Mailing Headed?
The mailing industry is seeing an abundance of ideas that might bring an end to what we’ve known as the CPI based increases over the past 12 years, but the jury’s still out on what the future may hold. Here’s the breakdown of what you need to know at this time:
- Two postal reform bills have been made in Congress — the Senate introduced a bill in March and the House updated its bill in June which was originally introduced in early 2017.
- The findings from the mandated 10-year review of the USPS CPI-cap rate system that went into effect in 2006 under the Postal Accountability and Enhancement Act (PAEA). The requirement stated that the PRC had to review the rate-making system that was in place, and determine if it met the original objectives. The PRC found that the current system was not meeting the original objectives, and it outlined areas of concern. This means we might see significant changes to ratemaking going forward via modifications to the current (or an entirely new) system: https://prodsolutions.wpengine.com/2017/12/01/prc-announces-proposed-rulemaking-usps-rate-system-changes/ and https://prodsolutions.wpengine.com/2018/02/26/help-protect-usps-rate-making-know/
- President Trump’s Task Force was set up in April and followed several of the president’s tweets around Amazon’s partnership with the USPS for parcel deliveries. Shortly after the announcement, the Alliance of Nonprofit Mailers stated they were giving their full support to this endeavor. It is anticipated that the Task Force will share their report around Aug. 10. https://prodsolutions.wpengine.com/2018/04/18/postal-audit-pain/
- The Market Dominant rates (including our typical CPI based price changes seen this past January), can not be changed unless a Board of Governors is established. sureConfirmations are pending and the USPS told MTAC members this month they expect a Board of Governors to be in place in time to reopen the mailing promotions for 2019. Without a Board of Governors in place to approve the promotions for 2018, many mailers were left disappointed.
Postal rates are headed in a new direction in the near future, and staying informed is critical to your mailing and fundraising success. We’re staying on top if it and will keep you informed as new information becomes available.