state aid to private schools

Espinoza v. Montana Department of Revenue raises an issue the Supreme Court has long wrestled with:  if a state-aid program violates a state constitutional prohibition against mixing church and state because religious institutions may participate, does discontinuing that program violate the federal constitution’s Free Exercise or Equal Protection Clauses.

Montana statutes allow taxpayers to receive tax credits for contribution to Student Scholarship Organizations (SSO) that give students scholarships to attend private schools, including religious schools. The Montana Department of Revenue adopted Rule 1 disallowing religious schools to participate in the program because it concluded their participation would violate Montana’s constitution. Parents of students attending religiously-affiliated private schools challenged Rule 1.