Sandra Day O'Connor

“ Courts are instructed to consider two factors: first, whether the program administers aid in a neutral fashion, without differentiation based on the religious status of beneficiaries or providers of services; second, and more importantly, whether beneficiaries of indirect aid have a genuine choice among religious and nonreligious organizations when determining the organization to which they will direct that aid. ”

“ For example, it has been reported that religious hospitals, which account for 18 percent of all hospital beds nationwide, rely on Medicare funds for 36 percent of their revenue. MergerWatch, New Study Details Public Funding of Religious Hospitals (Jan. 2002) ,http://www.mergerwatch.org/inthenews/publicfunding.html. Moreover, taking into account both Medicare and Medicaid, religious hospitals received nearly $45 billion from the federal fisc in 1998. Ibid. Federal aid to religious schools is also substantial. ”

“ Justice Souter portrays this inquiry as a departure from Everson. See post, at 2—3 (dissenting opinion) . A fair reading of the holding in that case suggests quite the opposite. Justice Black’s opinion for the Court held that the “ [First] Amendment requires the state to be a neutral in its relations with groups of religious believers and non-believers; it does not require the state to be their adversary.” Everson, supra, at 18; see also Schempp, supra, at 218, 222. How else could the Court have upheld a state program to provide students transportation to public and religious schools alike? ”

“ Tax Comm’n of City of New York, 397 U.S. 664 (1970) (upholding an exemption for religious organizations from New York property tax) , yet confer a significant relative benefit on religious institutions. The state property tax exemptions for religious institutions alone amount to very large sums annually. For example, available data suggest that Colorado’s exemption lowers that State’s tax revenues by more than $40 million annually, see Rabey, Exemptions a Matter of Faith: No Proof Required of Tax-Free Churches, Colorado Springs Gazette Telegraph, Oct. ”