"The American Civil Liberties Union of Virginia is appealing a judge's ruling that a private Christian school's use of public bonds to finance construction does not violate the constitutional separation of church and state."

"In a case that pits the First Amendment's establishment clause prohibiting government-sponsored religion against the guarantee of free speech, an Albemarle County Circuit Court judge came down on the side of free speech; now the case could go to the Virginia Supreme Court."

"'Lacking a compelling government interest, it would be impermissible viewpoint discrimination to deny validation of conduit bonds to [The Covenant School], under a broad neutral government program in which other church-affiliated institutions have taken part, solely on the basis of its religious viewpoint,' wrote Circuit Judge Paul M. Peatross in an order dated April 3."

"In December, the Albemarle County Industrial Authority, an arm of the government that helps finance educational facilities in the county, authorized the issuance of bonds worth up to $14 million for The Covenant School, a nondenominational Christian day school."

"Three county taxpayers, led by the state ACLU, have challenged the authorization, claiming, 'the authority cannot issue bonds to finance a new upper school building for The Covenant School if (1) the school is pervasively religious, or (2) the bonds will fund specifically religious activities. Both are the case here,' according to court documents."

"Peatross said he disagreed."

"'[The Covenant School] does not have the primary purpose of providing religious training or theological education; it is not pervasively sectarian... The conduit bonds will not finance chapels or their like,' the judge wrote."

"If the Virginia Supreme Court agrees to hear the case and validates the bonds, as Peatross did, the school can sell the bonds to investors with the lure of interest that, under current law, is tax exempt."

"One witness testified at a court hearing in February that the use of such bonds could save the school $300,000" (Adrienne Schwisow, The Daily Progress, April 30, 2000).

"The ACLU's appeal, which legal director Rebecca Glenberg said she will file Wednesday in the state's highest court, contends that because the authority bonds would be used to finance construction of buildings where religious teachings and activities would occur, the financing is unconstitutional" (Adrienne Schwisow, The Daily Progress, April 30, 2000).