Keep the CPI Postal Rate Cap Alive!
There are no guarantees when "grand" budget and funding bills make their way through Congress ... there's always a chance some horse-trading will be tacked on that undermines the interests of and harms the direct marketing community. That's why I was more than an interested bystander when a federal budget deal was announced last week that seeks to keep the government funded without another costly shutdown.
There's nothing in this bill (so far) that is nefarious to marketers (a vote is still needed in the Senate). In the whole of the budget bill, some fiscal conservatives are not happy—prompt spending controls have been punted, and deficit reductions have been kicked down the road, a reflection of our still-weak economy being the rationale.
But it's also a reflection of what's dysfunctional in Washington: A seemingly ever-present readiness and willingness to punt fiscal discipline in more matters than just the federal budget. At least the three-year pattern of budget shutdowns and debt ceilings may be diverted. At least we can hope.
Now to postal reform ... which was not part of the budget bill.
We need postal reform legislation—both political parties and nearly all postal stakeholders agree on this, but there's devil in details in a current Senate proposal to move another breakthrough piece of legislation forward.
The reason for postal reform's urgency, however, has nothing to do with the annual rate cap on postage increases that is now part of federal law.
Yet this most precious centerpiece for ratepayers of the 2006 postal reform act—the Consumer Price Index-Urban annual rate cap on postage hikes—is dispensed in the Carper-Coburn Postal Reform Act of 2013 (S. 1486) bill now before the Senate Homeland and Governmental Affairs Committee. Crucially for us, Senator Tammy Baldwin (D-WI) is leading a bipartisan effort to remove from the bill Section 301 (a Section which would eliminate this rate cap for market-dominant classes, among them First-Class Mail and Standard Mail). If she is successful, the vital rate cap would be preserved. A markup for the bill overall in Committee is scheduled for this coming Tuesday (Dec. 18), so there is still time to voice support for Sen. Baldwin's effort to amend the legislation and save the cap.