Postal Service may need emergency rate hike, postmaster says - KALB-TV News Channel 5 & CBS 2

Postal Service may need emergency rate hike, postmaster says

Posted:
© MGN Online © MGN Online

WASHINGTON (CNN) - The Postal Service may need an emergency rate increase to stay afloat.

That's according to Postmaster General Patrick Donahoe, who's testifying before a Senate committee. Donahue says the agency's cash balance next month likely will cover only five days of its average daily expenses.

The panel is looking at a plan to fix the agency's finances, including ending Saturday delivery and changing the way retiree health care costs are calculated.

Without help from Congress, the agency expects its multibillion-dollar annual losses to worsen.

Media and marketing firms that depend on postal services say a broad rate hike could hurt their business.

The independent Postal Regulatory Commission must approve any emergency postal rate increase request.

"We've lost 27 percent of our mail over the course of the last five to six years," Donahoe said earlier this year. "And when that happens, you have to make changes."

In addition to selling post offices, the Postal Service has already reduced its workforce by nearly 200,000 and cut 21,000 mail routes.

 © 2013 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Man killed in Natchitoches Parish crash

    Man killed in Natchitoches Parish crash

    Sunday, July 27 2014 2:05 PM EDT2014-07-27 18:05:16 GMT
    NATCHITOCHES PARISH, La. (KALB News Channel 5) -- A single vehicle crash killed a young man from Pleasant Hill, La. in the early morning hours of July 27, 2014 according to State Police.
    More >>
    NATCHITOCHES PARISH, La. (KALB News Channel 5) -- A single vehicle crash killed a young man from Pleasant Hill, La. in the early morning hours of July 27, 2014 according to State Police.
    More >>
  • Arrest made in murder of Pamela Carnahan

    Arrest made in murder of Pamela Carnahan

    Saturday, July 26 2014 10:13 PM EDT2014-07-27 02:13:13 GMT
    ALEXANDRIA, La. (KALB News Channel 5) -- The Alexandria Police Department have made an arrest in the May 9 murder of Pamela Carnahan.More >>
    ALEXANDRIA, La. (KALB News Channel 5) -- The Alexandria Police Department have made an arrest in the May 9 murder of Pamela Carnahan.
    More >>
  • Big heat but cooler weather coming...

    Big heat but cooler weather coming...

    Saturday, July 26 2014 5:14 PM EDT2014-07-26 21:14:21 GMT
    Tomorrow, expect a hot day with a big dome of high pressure moving right overhead. High temperatures will most likely climb into the mid-90s with mostly sunny skies and light southwest winds. With sinking air over the region, atmospheric pollutants and allergies will get banked up along the surface with no where to go. For this reason, pollen counts will be increasing tomorrow and air quality will most likely go down, so keep that in mind if you have breathing problems or allergies.Changes wi...More >>
    Tomorrow, expect a hot day with a big dome of high pressure moving right overhead. High temperatures will most likely climb into the mid-90s with mostly sunny skies and light southwest winds. With sinking air over the region, atmospheric pollutants and allergies will get banked up along the surface with no where to go. For this reason, pollen counts will be increasing tomorrow and air quality will most likely go down, so keep that in mind if you have breathing problems or allergies.Changes wi...More >>
Powered by WorldNow
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KALB. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.