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 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.

What is urgent, of course, is relief from 2006 Congressional mandates to pre-fund retiree health benefits at a magnitude that was (and still is) wholly unsustainable and has proven to be unrealistic. One might say how ironic it is to have a column praising fiscal discipline bemoan a pre-funding mandate, but this type of mandate is unprecedented, unwarranted and blind to financial facts. The CPI cap, on the other hand, has been an extremely useful tool to USPS and its customers and, arguably, an important driver of USPS management efforts to “right size” USPS infrastructure to today’s mail (and marketing) realities.

Fiscal discipline matters to the private sector, and to all U.S. citizens in our own households and our business affairs. It is shocking (to a layperson, if not Beltway insiders) that such discipline means little to too many policymakers. Price caps are a common-sense, and extremely demonstrable, method for assuring predictable increments in postage hikes which serves to aid businesses and nonprofit organizations in their marketing and media planning. Take these caps away, and we’re back to uncertainty, costs rising unchecked and diverted dollars from direct mail media spending.

Stay tuned to industry organization efforts to see postal reform through—but with the all-important CPI rate cap intact. I’m hopeful Sen. Baldwin has a great week, and so do we.

Timing Really Is Everything

The recent flaps over mailings sent out by Republican fundraisers reminded me of a rule put forth years ago by the late Dick Benson: “Direct mail should be scrupulously honest.” In case you don’t know, here’s the skinny. First, the use of the word “Census” on mailings by the Republican National Committee and the National Republican Congressional Committee led to Congressional passage of a bill last month that required new, clarifying language on the outer.

The recent flaps over mailings sent out by Republican fundraisers reminded me of a rule put forth years ago by the late Dick Benson: “Direct mail should be scrupulously honest.”

In case you don’t know, here’s the skinny. First, the use of the word “Census” on mailings by the Republican National Committee and the National Republican Congressional Committee led to Congressional passage of a bill last month that required new, clarifying language on the outer. Apparently, there had been some concern that people would mistake these efforts for the big Census Bureau mailing that was due to drop. Then, someone who actually had that complaint called the number on the RNC’s donation form, only to discover that it was for a phone sex line. Coming on the heels of news about lavish RNC spending, it’s been a tough few weeks for the party.

It’s easy to dismiss the second problem as merely a vendor mistake, one that appeared on only some of the mailings. It’s also easy to brush aside criticism of using “Census” on the outer. After all, it’s legal — it had passed muster with the USPS. And, it doesn’t really look like the Census mailer. It’s pretty obvious when opened that it’s just another issues poll, with leading questions, and a request for money. There’s nothing wrong with that, both parties have been mailing surveys for many years.

But it illustrates a bigger problem. A great national political party shouldn’t rely on a gimmick, like putting “Census”, or the IRS form — like “(2009) Return Enclosed” on the outer envelope to get someone to open it. Seriously, no one at the RNC thought this through, and saw this bad publicity coming? And, given how some of the Republican base feels about the Census, and especially, the IRS, it’s an especially puzzling choice of a teaser.

Twenty-five years ago, in the newsletter Who’s Mailing What!, Roger Craver wrote that to have a successful direct mail appeal, the “donors of principle,” the heart of any political organization, must be motivated by writing that conveys mission, selectivity, urgent need and effectiveness. The GOP was way ahead of the Democratic Party in this regard for decades, but as shown in the 2008 presidential race, not anymore. It’s going to be very interesting to see how both parties will energize the faithful in this election year.