University Times

Postal rates in some classifications went up this week, but a Pitt mailing services official says the increases will not have a major impact on mailing costs for the University.

Gus Tytke, assistant director of University Mailing Services, said "Right now, we don't want to confuse anyone, because it is a complicated thing. But I don't see the increases as being overly dramatic to the University."

Mailing Services handles about 28 million pieces of mail annually, Tytke said. The highest percentage of mailing costs are for bulk-rate mailings, he said, which in some categories actually went down in cost.

Last month, the U.S. Postal Service, a quasi-independent agency that receives no tax money for operations, announced sweeping rate changes, which were approved by the service's Board of Governors December 5. The rate changes went into effect Jan. 7.

According to news releases issued by the postal service last fall, earnings for fiscal year 1999 topped $350 million; but the service incurred a $199 million deficit this past fiscal year, which ended Sept. 30. The postal service also carries a $3.5 billion debt from prior years.

The U.S. Postal Service delivers about 40 percent of the world's volume of mail. Rates are set by class of mail with the legal mandate that each class cover its own cost. Overall, rates went up 4.6 percent.

First-class mail went up a penny from 33 to 34 cents for the first ounce, about a 3 percent increase. But the first-class rate for two ounces stayed at 55 cents, and the per ounce rate above 1 ounce went down a penny from 22 to 21 cents.

The cost of mailing postcards (20 cents) remained the same.

Tytke said there are cost trade-offs in the new rates. Although rate increases were announced for bulk mail pre-sorted by 3-digit (up 5.3 percent) and 5-digit (up 12.9 percent) zip codes, the non-profit bulk mail basic rate decreased by 8.3 percent, from 16.9 cents to 15.5 cents per unit. "There's just about an equal trade-off in costs between these two based on the volume of bulk mail we do," he said.

Tytke cautioned that there is no quick formula for calculating the cost an individual office may have to bear. "I don't want a department to be saying, 'Because the first-class [first-ounce] rate is up 3 percent, we'll have a 3 percent overall extra cost from last year.' It depends on the volume, the number of pieces, what they weigh, a whole number of things," Tytke said.

High-volume mailing offices such as Admissions and Financial Aid, the Registrar's office and Public Affairs have been notified of the rate increases, he said.

Mailing Services plans to disseminate rate information campus-wide, including announcements to deans and department heads and posted flyers in campus buildings' mail sorting rooms.

Tytke added that his unit offers customized guidance to departments on request. Mailing Services gets an average of 30-40 calls a week with requests for advice from University departments and individuals, he said.

"We do want departments to have some idea, for their budget planning and so forth," Tytke said. "But, you have to realize, the postal service sets standards of what has to be mailed first-class: statements, invoices, printed matter that goes to students, so in some classifications there isn't any leeway."

Because only the first-class first ounce rate went up, he said his office has begun delineating the amount of first-class mail the University sends out at one ounce and at more than one ounce, something that had not been tabulated in the past.

Pitt will not be affected by the increase in periodical bulk mail rate, used by magazine and newspaper publishers, or the increase in express mail costs.

"We do not mail at the periodicals bulk rate," Tytke said. Periodicals such as Pitt Magazine, a quarterly with a mailing list of some 200,000, are mailed straight non-profit bulk, he said.

The University contracts with UPS for its express mail delivery service and rates are negotiated with the carrier, he added.

— Peter Hart