WASHINGTON (AP) - The Postal Service may need an emergency rate increase to stay afloat.
That's according to Postmaster General Patrick Donahoe, who's testifying today 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.