ALL ACADEMICS AND STAFF AT UCSD

SUBJECT:    Proposed USPS Rate Increase for 2001

Under a U.S. Postal Service proposal announced January 11, 2000, the cost of a one ounce letter would rise 3% from $.33 to $.34 early in 2001. Increases of varying amounts, mostly greater than 3%, are proposed for other classes of mail. Here is a brief summary of the proposed changes using examples for the most popular rates used by campus departments. The average rate increase, or a range, is indicated for each class.

CLASS	CURRENT	PROPOSED
First Class (3.6%)
- One-ounce letter	$.33	$.34
- Additional ounces	.22	.23
- Non-standard surcharge	.11	.11
- Postcard	.20	.21
Priority Mail (15%)
- One-pound or less	3.20	3.45
- Flat Rate envelope	3.20	3.85
Express Mail (3.8%)
- One-half pound	11.75	12.30
- Flat Rate envelope	15.75	16.05
Non-Profit Standard (9.4%)
- Non-Auto. flat, basic	.223	.219
- Non-Auto. Letter, basic	.169	.159
Package Services (.3 - 18.1%)
- Media Mail (Book Rate), 5 lbs.	2.93	3.01
- Library Mail (Library Rate), 5 lbs.	2.93	3.00
- Parcel Post, 10 lbs., Zone	16.60	18.24
Special Services (up to 36%)
- Certified Mail	1.40	2.10
- Insurance, up to $50	.85	1.35
- Registered Mail, up to $100 value	6.20	7.50
- Address Correction Notice	.50	.60
- Return Receipt	1.25	1.50

More detailed information, including a complete listing of current and proposed rates can be found at: http://www.usps.gov/rates/.

If you are beginning to work on your budget for FY 2000/01, this information should help you to estimate the impact of the rate increase. An effective date for the new rates will not be set until the end of 2000, but past experience suggests that it will be in mid-January 2001. Historically, the Postal Rate Commission (PRC) recommends changes to the rates and the USPS almost always accepts those recommendations. It is likely that some of the rates above will change after the PRC completes its work later this year. We will continue to monitor this USPS request and keep you informed of its status.

Our staff is always available to answer any questions regarding your mailing needs or assist you in making a decision on the most cost effective program for your department. Please give us a call on x-41164.