The San Luis Obispo County Board of Supervisors has settled a case brought by the American Civil Liberties Union of Southern California. The suit stemmed from the County's grant of $2,500 to the Mission College Catholic Preparatory High School for a school theater production. The ACLU had argued that the grant violated the Establishment Clause of the United States constitution and Article IX and Article XVI of the California constitution, which prohibit government funding of sectarian schools and institutions.

We are very pleased to have settled this matter without the need for protracted litigation,. said ACLU attorney Peter Eliasberg. "This suit sends a clear message that government should not be spending taxpayer money to fund sectarian schools."

As a result of the lawsuit and settlement, the grant to Mission College Catholic Preparatory High School has been withdrawn. In addition, the defendants have agreed to abide carefully by the provisions of the California and federal constitutions guaranteeing the separation of church and state and to reimburse the ACLU for its costs and attorneys' fees in bringing the suit.