The U.S. Postal Service Governors on Tuesday proposed a 2-cent increase in the price of a first-class stamp, bringing the cost to 46 cents.

This proposed increase will be the second in two years. Last year, mail sent declined 17% .

Despite cost cutting measures, including the axing of 50,000 employees announced earlier this year, the post service is projecting a $7 billion deficit in the next fiscal year.

The change, if approved, will go into effect on January 2, 2012 is expected to raise $2.3 billion for the first nine months.

“There is no one single solution to the dire financial situation that the Postal Service faces,” Postmaster General John E. Potter said in a statement. “These proposed rate adjustments are moderate and part of a fair and balanced approach to insuring mail service for all Americans well into the future.”