Bull turkey.
There is no values free public space...certainly not the schools.
The Faith-based thing is simply an effort to reachout to people where they are -- to use whatever means seem to work -- to reach people for legitimate, agreed upon societal purposes. (I say this as someone who has no personal religious impulse whatsoever.)
I totally disagree. The "Faith-based thing" was, from the very start, GW Bush's nationalizing a similar plan he had implemented in Texas: to bring religious organizations under the government's welfare umbrella. It was sold as a way of delivering social services that traditionally were paid for and performed by groups such as the Salvation Army, Jewish Welfare and Catholic Charities -- but now at taxpayer expense.
The worst aspect of the program is not the liberals' worry about violating "separation of church and state" by funding "religious organizations." I personally don't care whether a social worker tries to proselytize or not. Some welfare recipients (heck, some welfare workers) could stand a little dose of piety.
What's worrisome is the potential corruption of legitimate, useful social service agencies with the promise of federal funds. Instead of bell-ringers out in front of department store during the Christmas season, we'll have highly-paid lobbyists pushing full-time for bigger appropriations to HHS.