In Association of Faith-Based Organizations v. Bablitch, (WD WI, Sept. 29, 2006), a Wisconsin federal district court held that it is unconstitutional for the state to exclude a religious charitable organization from participation in the Wisconsin State Employees Combined Campaign solely because the charity discriminates on the basis of religion in choosing its governing board and employees. In reaching the conclusion that the First Amendment rights of religious charitable organizations are infringed by the state's policy, the court rejected the state's arguments that the exclusion furthered a state policy against religious discrimination and that the presence of religious groups would cause controversy and reduce overall participation in the charitable campaign.
Yesterday's Milwaukee Journal Sentinel says that the state will not appeal the ruling. It also points out that to qualify for inclusion in the Combined Campaign, religious charities will still have to demonstrate that they do not discriminate in the delivery of services.