Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 17, 1990 TAG: 9004170632
SECTION: VIRGINIA PAGE: B3 EDITION: EVENING
SOURCE: Associated Press
DATELINE: LYNCHBURG LENGTH: Medium
Nathaniel Habel and Haynie Kabler, both of Lynchburg, said Monday they believe the ruling violated the constitutional separation of church and state.
The state's highest court will be asked to consider whether Liberty is primarily a religious school and if the tax-free bonds should be considered state aid, as lawyers argued in Lynchburg Circuit Court.
Judge Mosby Perrow ruled in favor of Liberty in March, holding that the school's primary purpose was to provide a liberal arts education rather than religious indoctrination and said the financing would not constitute state aid.
Liberty plans to use the money to pay for new construction and buy itself from Old Time Gospel Hour, which owns the property.
Falwell spokesman Mark DeMoss said Monday's announcement was no surprise and the university would go forward with taxable financing on an interim basis.
"While the prolonged litigation is somewhat of an irritation, it's not going to slow down our growth or development," DeMoss said.
He said he did not know how much money would be borrowed.
Earlier this year, Americans United for Separation of Church and State accused Falwell of trying to hide the religious character of the school. Habel, a retired Baptist minister, is a member of the group.
Joseph Conn, a spokesman for the group, said Americans United is afraid granting the bonds to Liberty would set a precedent encouraging other religious ministries to seek similar funding.
After Perrow issued his ruling, Falwell said he hoped the case set an example for other Christian schools to follow.
Conn said Americans United is involved in 14 or 15 court cases. The organization has 50,000 individual members along with 4,000 churches and religious groups, he said.
by CNB