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PROGRAMMING NOTE

On Michigan's Affirmative Action Ban

Updated: Thursday, May 1, 2014
On Michigan
KALAMAZOO, Mich. (NEWSCHANNEL 3) - It's been nine days now since the Supreme Court upheld Michigan's right to ban affirmative action in admissions to our colleges and universities.

Tonight, in Tom's Corner, Tom Van Howe says when laws are made by referendum--by popular vote--things can, indeed, get messy.

But he'll take messes created by voters over those created by lawmakers any day.

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It began with a petition. A right that is spelled out in the first amendment of our constitution. Not the second or the fifth. The first. Its right up there with freedom of speech and religion.

And in this case, a group of Michigan residents thought it was unfair for the University of Michigan to base admissions on affirmative action.

So they petitioned to have the matter placed on the ballot in the election of 2006. It was called Proposal 2.

Sometimes those kinds of off-year elections can wind up with important matters decided upon by only a small percentage of our electorate.

We know from experience that when the selection of a President is not a part of the whole, voters tend to stay home by the thousands. And it is clearly a discouraging trend.

But in 2006 we had a Governor’s race going on--Jennifer Granholm against Dick DeVos--and the turnout was pretty big: 58 percent.

And a majority of  them not only returned Granholm to Lansing, but said they also wanted a say in how our state’s flagship university chose which students to attend and why.

The measure passed, and amended our state constitution to prohibit discrimination or preferential treatment in public education.

This time the offended party was white.

In a nutshell, no longer could U-of-M or Michigan State or any other state school use the color of one's skin or ethnicity to move a particular student ahead of a more qualified white student.

White students who'd challenged the admissions process said they were being discriminated against in the name of racial diversity. No longer.

Law by referendum. Is it a good idea?

There is little question our elite campuses will not be as diverse. Already there are fewer minority students on campus.

There is little question some minority students who don't come from certain homes and school systems and economic backgrounds will be denied opportunities to redress perceived racial disparities of the past.

If all laws were passed by philosophical deep thinkers, there might have been a way to save the best parts of both arguments. But that is not the case.

Of course there’s the point of view that all petitions are financed anyway by someone with deep pockets who can--with the sheer force of an economic hurricane--convince voters to do just about anything.

I don't know if that assessment is true, but it is certainly the prevailing popular view of our government.

Lobbyists are spending tons of money everyday in Washington and Lansing to press arguments for or against the issues of the day.

And it's no accident that Congress has an abysmal approval rating of between 8 and 14 percent, depending on which poll you choose.

In short, we don’t trust them. And we don’t really trust them to take on a matter so sensitive as affirmative action.

But the average voters is something else. However uninformed voters might sometimes seem to be, however emotional they can become, however selfish or magnanimous they might be, they usually do the right thing.

I feel a certain comfort when an important  matter lands in their hands.

But this ruling leaves our colleges and universities in a bind as we move forward. It's not going to be easy.

Affirmative action is now against the law. They’re going to have to call in armies of deep philosophical  thinkers to find ways to balance fair competition and merit with need.

Along the way, maybe one of them will also find a way to walk on water.

But the effort has to be made.

We’ve come too far in rectifying the steep disadvantages and imbalances created over hundreds of years to turn our backs on them now.

We are still all in this together.

We do need, in fact, each other.

In this corner...I'm Tom Van Howe.

Business News

Last Update on September 02, 2014 17:28 GMT

ECONOMY-MANUFACTURING

WASHINGTON (AP) -- U.S. manufacturing grew in August at the strongest pace in more than three years as factories cranked out more goods and new orders rose.

The Institute for Supply Management, a trade group of purchasing managers, says its manufacturing index rose to 59 from 57.1 in July. Anything above 50 signals that manufacturing is growing.

A gauge of production rose to the highest level in four years, and a measure of new orders jumped to its highest in 10 years. That suggests that the sector should continue to grow in the coming months.

CONSTRUCTION SPENDING

WASHINGTON (AP) -- U.S. construction spending staged a strong rebound in July, rising by the largest amount in more than two years. All major categories of construction showed gains in an encouraging sign that spending on building projects will help boost the economy in the second half of this year.

The Commerce Department says construction spending rose 1.8 percent in July, the biggest one-month gain since May 2012. It followed a 0.9 percent decline in June, the largest setback in a year. That decline had been blamed in part on soggy weather which depressed construction activity in many parts of the country.

The July rebound pushed total construction to a seasonally adjusted annual rate of $981.3 billion, the highest level since December 2008. Spending on housing, non-residential and government projects all increased.

HOME PRICES

WASHINGTON (AP) -- U.S. home prices rose in July but at a slower rate compared with earlier this year.

Real estate data provider CoreLogic says prices rose 7.4 percent in July from July 2013. That was slightly below June's year-over-year increase of 7.5 percent.

Prices rose 1.2 percent in July from June.

The smaller price gains should make homes more affordable and support sales. The average 30-year fixed mortgage rate was 4.1 percent last week, the lowest in a year. And the number of available homes rose 3.5 percent in July to the most in nearly two years. A greater supply tends to limit the bidding wars that inflate prices.

UKRAINE-ECONOMY

BRUSSELS (AP) -- The International Monetary Fund says Ukraine will need billions of dollars in additional support if the fighting between the military and Russian-backed separatists in the country's east persists.

In its first in-depth assessment since granting the country a $17 billion bailout program in March, the IMF said Tuesday "risks loom large" for the country's economy.

It says the bailout program already faces a $3.5-billion funding shortfall through 2015, with the economy forecast to shrink by 6.5 percent this year. Analysts say Ukraine's gross domestic product might tumble even more.

It says if the fighting in the eastern region -- representing about 16 percent of Ukraine's GDP -- were to persist through next year, Kiev would likely need additional support worth $19 billion only to shore up its central bank reserves.

NEW NATURAL GAS PIPELINE

NEW YORK (AP) -- Dominion Resources, Duke Energy and other partners have proposed building a $5 billion natural gas pipeline to connect the Southeast with the prodigious supplies of natural gas being produced in Pennsylvania, Ohio and West Virginia.

Gas is being relied upon to generate more of the nation's electricity in recent years because the enormous new domestic supplies have drastically lowered its price and it burns cleaner than the nation's other most important fuel for electric power, coal.

The 550-mile project will begin in Harrison County, West Virginia and stretch to Robeson County, North Carolina, in the southern part of the state.

The partners, which included Piedmont Natural Gas and AGL Resources, expect to receive regulatory approval by mid-2016 and to start operating the pipeline in 2018.

HALLIBURTON-SPILL SETTLEMENT

HOUSTON (AP) -- Halliburton says it has agreed to pay $1.1 billion to settle a substantial portion of plaintiff claims arising from the 2010 Gulf of Mexico oil spill.

The settlement, which is subject to court approval, will be paid into a trust until appeals are resolved over the next two years.

Halliburton was BP PLC's cement contractor on the drilling rig that exploded in the Gulf in April 2010, killing 11 workers and triggering the largest offshore oil spill in U.S. history.

The deal will settle claims assigned to Halliburton as a result of BP's settlement in 2012 and punitive damages from the loss of property or commercial fishing activity resulting from the oil spill.

DOLLAR GENERAL-FAMILY DOLLAR

GOODLETTSVILLE, Tenn. (AP) -- Dollar General is boosting its bid for rival Family Dollar to approximately $9.1 billion and says it's now willing to more than double the number of stores it would shed to avoid trouble with regulators.

The newest bid from Dollar General is worth $80 per share, up from $78.50. Dollar General's previous bid, worth nearly $9 billion, was rejected by Family Dollar in favor of an offer of about $8.5 billion from Dollar Tree Inc.

Dollar General Corp. says it will now divest 1,500 stores to steer clear of antitrust issues. It previously said it would divest up to 700 stores. The Goodlettsville, Tennessee company has also agreed to pay a $500 million reverse break-up fee to Family Dollar Stores Inc. if the deal runs into antitrust roadblocks.

COMPUWARE-TAKEOVER

UNDATED (AP) -- Private equity firm Thoma Bravo is spending about $2.5 billion to buy Compuware and take the software developer private.

The companies say Compuware stock owners will receive about $10.92 for each share they own. That price includes mostly cash and some stock from Compuware spin-off Covisint.

It represents a premium of about 17 percent to the Detroit company's Friday closing price.

Compuware says its board unanimously approved the deal and recommends shareholders vote for it as well. Activist investor Elliott Management has already agreed to vote in favor of the deal. Elliott holds more than a 9 percent stake in Compuware Corp. and tried to acquire the company last year.

Thoma Bravo and Compuware expect the deal to close early next year.

Shares of Compuware are soaring in morning trading.

NORWEGIAN CRUISE LINE-PRESTIGE-ACQUISITION

NEW YORK (AP) -- Norwegian Cruise Line is getting into the luxury cruise business by acquiring Prestige Cruises International in a deal worth about $3 billion.

Prestige operates high-end cruise lines Oceania Cruises and Regent Seven Seas Cruises.

Norwegian Cruise Line Holdings Ltd., based in Miami, values the deal at $3.025 billion, when debt is included. Its shares are up more than 10 percent today.

Prestige is owned by the private equity firm Apollo Global management LLC, which also owns a large stake in Norwegian.

The deal is expected to close in the fourth quarter.

1-800-FLOWERS-HARRY & DAVID

1-800-FLOWERS buying Harry & David for $142.5M

CARLE PLACE, N.Y. (AP) -- 1-800-FLOWERS.COM Inc. is buying Harry & David for $142.5 million to help broaden the assortment of foods that its customers can choose as gifts.

The deal includes Harry & David Holdings Inc.'s brands, websites, 47 retail stores, some plants, orchards and its headquarters in Medford, Oregon.

Harry & David's fruit, food and other gifts are housed under brands including Wolferman's, Cushman's and its namesake. Products include Royal Riviera pears, Wolferman's specialty English muffins and Cushman's HoneyBells citrus gifts.

1-800-FLOWERS' brands already include Fannie May, Cheryl's and The Popcorn Factory.

The transaction is expected to close in October.

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