Taxpayers supported by the American Civil Liberties Union, theAnti-Defamation League and Americans United for the Separation ofChurch and State have lost their challenge to a tuition tax creditfor private and religious schools.

In a Georgia Supreme Court opinion released Monday, JusticeRobert Benham ruled the taxpayers had not proven they had beenharmed by the program and thus had no right to sue.

"Taxpayer status fails to demonstrate a special injury to theirrights so as to create standing to challenge the program," Benhamwrote.

Four Georgia taxpayers, starting with named plaintiff RaymondGaddy, sued the Department of Revenue and Revenue CommissionerLynnette Riley, alleging the Qualified Education Tax Credit Programis unconstitutional because it redirects public tax funds toprivate religious schools.

William K. Whitner of Paul Hastings, representing the taxpayers,alleged the program amounts to an unconstitutional diversion ofpublic funds for private use.

Civil rights attorney Gerald Weber Jr. filed a brief supportingthe taxpayers on behalf of the ACLU, Americans United forSeparation of Church and State, the Anti-Defamation League andothers.

Representing the state Department of Revenue, Senior AssistantAttorney General Alex Sponseller told the high court at oralarguments in January that the $58 million in tax credits for theschool scholarships program is dwarfed by the $15 billion the statespends on public education. And he said the taxpayers have nostanding to sue.

"We appreciate the court's decision today ruling in favor of theGeorgia Department of Revenue and the State Revenue Commissioner toreject the challenge to Georgia's Qualified Education Tax Credit,"Attorney General Chris Carr said in an email. "We also want tocommend the work of Sr. Assistant Attorney General Alex Sponsellerand Assistant Attorney General Mitch Watkins in this case."

The plaintiffs' attorneys could not be reached immediately.

The k-12 tax credit scholarship program is managed by the stateDepartment of Revenue. Individuals may donate up to $1,000, couplesup to $2,500, and corporations thousands more to "studentscholarship organizations," which are private charitable 501(c)(3)corporations. These groups must allocate at least 90 percent of thefunds to award scholarships of up to $8,983 per student to use atqualifying private schools. The organizations are required todistribute the scholarships to students who meet certaineligibility requirements, and the parent of each recipient mustendorse the award to the private school of the parents' choice fordeposit into the school's account. The contributors receivedollar-for-dollar tax exemptions on their income taxes.