No, the taxpayer-supported schools should abolish all extracurricular clubs in the school including religious-based clubs. If it costs so much as a penny to run the electricity in the room that they meet in, it is a taxpayer ripoff.
Actually, it is somewhat amusing that many of the same people that have been fighting tooth and nail to keep religion-based clubs in their taxpayer-funded government schools are all of a sudden angry and shocked that a decision like this could happen.