Posted on 03/05/2007 1:39:59 PM PST by SmithL
San Francisco (AP) -- Municipal agencies may provide tax-exempt bonds to a religious school as long as its curriculum includes secular classes, California's high court ruled Monday.
The 4-3 decision reverses an earlier ruling and hands a victory to three Christian schools in Southern California.
In 2002, Oaks Christian School, California Baptist University and Azusa Pacific University wanted to construct cafeterias, a mail center and athletic facilities using bonds from "joint power authorities."
California has more than 350 joint power authorities public consortiums that provide tax breaks to institutional investors who fund public interest projects with low-interest loans. The municipal groups often finance residential housing and schools.
Critics complained the tax-free municipal bonds violated church-state separation in California's Constitution.
Justice Joyce Kennard, a Republican appointed by Gov. George Deukmejian in 1989, said the bonds didn't violate state law or the First Amendment of the U.S. Constitution.
(Excerpt) Read more at sfgate.com ...
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