hunt mcnair argued february decided june action injunctive declaratory relief appellant challenges south carolina educational facilities authority act violative establishment clause first amendment insofar authorizes proposed financing transaction involving issuance revenue bonds benefiting college act establishes educational facilities authority assist issuance revenue bonds higher educational institutions constructing financing projects buildings facilities site preparation including facility sectarian instruction religious worship neither state authority obligated directly indirectly pay principal interest bonds state taxing power pledged implicated expenses authority also must paid solely revenues projects authority gave preliminary approval application submitted college whose students baptists subsequently modified application requests issuance revenue bonds used refinancing capital improvements completing dining hall statutory scheme project conveyed authority lease back college reconveyance college full payment bonds lease agreement contain clause obligating institution observe act restrictions sectarian use enabling authority conduct inspections provision reconveyance restrict project nonsectarian use trial denied appellant relief state affirmed vacated judgment remanded case reconsideration light lemon kurtzman intervening decisions state adhered earlier decision held act construed south carolina guidelines lemon kurtzman supra violate establishment clause pp purpose act secular benefits statute available institutions higher education state whether religious affiliation pp statute primary effect advancing inhibiting religion college involved significant sectarian orientation project must confined secular purpose lease agreement enforced inspection provisions forbidding religious use pp statute foster excessive entanglement religion record show religion permeates college inspection authority insure project used religious purposes necessarily lead entanglement authority statutory power participate certain management decisions also effect view narrow construction state limiting power insuring college fees suffice meet bond payments absent default lease agreement leave full responsibility college regarding fees general operations pp powell delivered opinion burger stewart white blackmun rehnquist joined brennan filed dissenting opinion douglas marshall joined post robert mcc figg argued cause appellant brief thomas bryant huger sinkler argued cause appellees brief daniel mcleod attorney general south carolina theodore guerard george kugler attorney general stephen skillman assistant attorney general charles parker lewis popper deputy attorneys general filed brief state new jersey amicus curiae urging affirmance justice powell delivered opinion appellant south carolina taxpayer brought action challenge south carolina educational facilities authority act act code ann et seq supp violative establishment clause first amendment insofar authorizes proposed financing transaction involving issuance revenue bonds benefit baptist college charleston college trial denial relief affirmed south carolina vacated judgment remanded case reconsideration light intervening decisions lemon kurtzman earley dicenso robinson dicenso tilton richardson remand south carolina adhered earlier position affirm begin setting general structure act act established educational facilities authority authority purpose assist institutions higher education construction financing refinancing projects code ann supp primarily issuance revenue bonds terms act project may encompass buildings facilities site preparation related items may include facility used used sectarian instruction place religious worship facility used used primarily connection part program school department divinity religious denomination code ann supp revenue bonds used connection project issued authority act quite explicit bonds shall obligations state directly indirectly revenue bonds issued provisions chapter shall deemed constitute debt liability state political subdivision thereof pledge faith credit state political subdivision shall payable solely funds herein provided therefor revenues revenue bonds shall contain face thereof statement effect neither state south carolina authority shall obligated pay interest thereon except revenues project portion thereof issued neither faith credit taxing power state south carolina political subdivision thereof pledged payment principal interest bonds issuance revenue bonds provisions chapter shall directly indirectly contingently obligate state political subdivision thereof levy pledge form taxation whatever therefor make appropriation payment code ann supp january college submitted authority preliminary approval application issuance revenue bonds proposal authority issue bonds make proceeds available college use connection portion campus designated project project within meaning act return college convey project without cost authority lease property conveyed back college payment full bonds project reconveyed college authority granted preliminary approval january present form application requests issuance revenue bonds totaling applied refund financing capital improvements applied completion dining hall facilities advantage financing educational institutions authority derives relevant provisions federal south carolina state income tax laws provide effect interest bonds subject income taxation status interest enables authority instrumentality state market bonds significantly lower rate interest educational institution forced pay borrowed money conventional private financing college application authority preliminary one details financing arrangement yet fully worked rules regulations adopted authority govern certain aspects see jurisdictional statement appendix pp every lease agreement authority institution must contain clause obligating institution neither leased land facility located thereon shall used sectarian instruction place religious worship connection part program school department divinity religious denomination consideration appellant establishment clause claim extends proposal approved preliminarily additions contemplated act rules decisions courts reaffirm today committee public education religious liberty nyquist post principles govern consideration challenges statutes violative establishment clause three first statute must secular legislative purpose second principal primary effect must one neither advances inhibits religion finally statute must foster excessive government entanglement religion lemon kurtzman purpose statute manifestly secular one benefits act available institutions higher education south carolina whether religious affiliation legislature declaration purpose may always fair guide true intent appellant makes suggestion introductory paragraph act represents anything statement purpose hereby declared benefit people state increase commerce welfare prosperity improvement health living conditions essential future generations youth given fullest opportunity learn develop intellectual mental capacities essential institutions higher education within state provided appropriate additional means assist youth achieving required levels learning development intellectual mental capacities purpose chapter provide measure assistance alternative method enable institutions higher education state provide facilities structures sorely needed accomplish purposes chapter public benefit good extent manner provided herein code ann supp identify primary effect narrow focus statute whole transaction presently us whatever may initial appeal proposition establishment clause prohibits program manner aids institution religious affiliation consistently rejected bradfield roberts walz tax tilton richardson stated another way accepted recurrent argument aid forbidden aid one aspect institution frees spend resources religious ends aid normally may thought primary effect advancing religion flows institution religion pervasive substantial portion functions subsumed religious mission funds specifically religious activity otherwise substantially secular setting tilton richardson supra refused strike direct federal grant four colleges universities connecticut chief justice burger plurality concluded despite institutional rhetoric none four colleges pervasively sectarian held open possibility future cases individual projects properly evaluated challenges arise respect particular recipients evidence presented show institution fact possess characteristics conclude proposed transaction place authority position providing aid religious opposed secular activities college scope authority power assist institutions higher education extends projects act specifically project shall include buildings facilities used religious purposes absence evidence contrary must assume proposed financing refinancing relates buildings facilities within properly delimited project clear record portion campus conveyed college authority leased back financed event must part project subject prohibition use religious purposes addition indicated every lease agreement must contain clause forbidding religious use another allowing inspections enforce agreement reasons satisfied implementation proposal primary effect advancing inhibiting religion final question posed case whether arrangement unconstitutional degree entanglement state college appellant argues authority become involved operation college inspecting project insure used religious purposes participating management decisions college opinion lemon plurality opinion tilton grounded proposition degree entanglement arising inspection facilities use varies large measure extent religion permeates institution finding excessive entanglement lemon relied substantial religious character elementary schools chief justice burger opinion plurality tilton placed considerable emphasis fact federal aid approved spent college setting since religious indoctrination substantial purpose activity colleges universities less likelihood primary secondary schools religion permeate area secular education enough federal government financing separable secular function overriding importance order sustain legislation challenged closer issue precedents presented contention authority become deeply involved financial policy decisions college authority empowered act enerally fix revise time time charge collect rates rents fees charges use services furnished furnished project portion thereof contract person partnership association corporation body public private respect thereof establish rules regulations use project portion thereof designate participating institution higher education agent establish rules regulations use project undertaken participating institution higher education code ann supp south carolina pointed act patterned closely south carolina industrial revenue bond act perhaps reason appears confer unnecessarily broad power responsibility authority opinion however reflects narrow interpretation practical operation powers counsel plaintiff argues broad language act causes state necessity become excessively involved operation management administration college construe act basic function authority see fees charged sufficient meet bond payments unconditionally obligate college pay sufficient rentals meet principal interest requirements become due bonds impose adequate schedule charges fees order provide adequate revenues operate maintain said facilities make rental payments app iii case comes us action injunctive declaratory relief test constitutionality act applied proposed rather actual issuance revenue bonds specific provisions act bonds issued rules regulations authority college proposal interpreted south carolina confine scope assistance secular aspects liberal arts college foreshadow excessive entanglement state religion accordingly affirm holding act constitutional interpreted applied case affirmed footnotes originally submitted college approved authority proposal called issuance exceeding revenue bonds indicated stipulation counsel college subsequently secured bank loan amount proposes issuance revenue bonds act proceeds used repay full college current fund balance approximately advanced college plant fund aforesaid ii refund outstanding loans amount whose proceeds pay indebtedness incurred capital improvements iii finance completion dining hall facilities cost approximately app emphasis original gross income federal income tax purposes include interest obligations state territory possession political subdivision foregoing state income tax purposes gross income include interest upon obligations possessions state political subdivision thereof code ann supp rule relating lease agreement provides part lease agreement contains provision permitting institution repurchase project upon payment bonds instance lease agreement shall provide deed reconveyance authority institution shall made subject condition long institution voluntary grantee institution shall leased premises part thereof facility thereon financed whole part proceeds bonds shall used sectarian instruction place religious worship used connection part program school department divinity religious denomination rule goes allow institution remove option case involuntary sales condition may provide option institution leased premises shall become subject involuntary judicial sale result foreclosure mortgage sale pursuant order title vested purchaser judicial sale institution shall fee simple shall free condition applicable institution voluntary grantee thereof see infra board education allen commented importance role private education country underlying cases underlying also legislative judgments preceded decisions recognition private education played playing significant valuable role raising national levels knowledge competence experience appellant also takes issue authority rule allowing purchaser involuntary sale take title free restrictions religious use see supra appellant reliance tilton richardson respect misplaced struck provision colleges unrestricted use federally financed project years present case contrast restriction religious use lifted institution seeking assistance authority voluntary transferees purchaser judicial sale religious institution bidding property judicial sale purchase property outbidding prospective purchasers speculative possibility absence use limitation ever afford aid religion even event acquiring religious institution presumably pay fair value property state aid involved case special sort expenditure public funds either grant loan reimbursement state expenditures made parochial school college extending committing state credit rather state aid consists financial assistance directly indirectly implicate public funds credit creation instrumentality authority educational institutions may borrow funds basis credit security property upon favorable interest terms otherwise available new jersey characterized assistance rendered educational institution act generally similar south carolina act merely governmental service clayton kervick south carolina opinion described role state mere conduit conclude primary effect assistance afforded neither advance inhibit religion lemon tilton need decide whether appellees argue brief appellees importance tax exemption south carolina scheme brings present case walz tax upheld local property tax exemption included religious institutions although record case abbreviated free ambiguity burden rests appellant show extent college church related cf board education allen failed show formalistic church relationship tilton established formal denominational control liberal arts college render aid institution violation establishment clause far record concerned showing college places special emphasis baptist denominational sectarian type education noted faculty student body open persons religious affiliation justice brennan justice douglas justice marshall join dissenting question presented case whether south carolina assistance baptist college charleston south carolina educational facilities authority act constitutes constitutionally impermissible aid state sectarian institution test adhere determining questions whether arrangement state baptist college foreclosed establishment clause first amendment among involvements religious secular institutions serve essentially religious activities religious institutions employ organs government essentially religious purposes use essentially religious means serve governmental ends secular means suffice abington school district schempp brennan concurring walz tax brennan concurring lemon kurtzman lemon separate opinion brennan act authorizes financing arrangement authority baptist college charleston south carolina educational corporation operated south carolina baptist convention arrangement college convey substantial portion campus authority authority lease back property college agreed rental authority issue revenue bonds state south carolina amount bonds payable principal interest rents paid college authority lease proceeds sale bonds used pay outstanding indebtedness college construct additional buildings facilities use higher education operations upon payment full principal interest bonds arrangement requires authority reconvey title campus properties college free clear liens encumbrances arrangement however amount merely mortgage campus property authority also empowered inter alia determine location character project financed act construct maintain manage operate lease lessor lessee regulate enter contracts management operation project establish rules regulations use project portion thereof fix revise time time rates rents fees charges use project services furnished furnished project portion thereof words college turns state authority control substantial parts fiscal operation school life blood true act expressly provides state financing provided facility used used sectarian instruction place religious worship facility used used primarily connection part program school department divinity religious denomination code ann supp obligating institution neither leased land facility located thereon shall used sectarian instruction place religious worship connection part program school department divinity religious denomination thus crystal clear think scheme involves state degree policing affairs college far exceeding called statutes struck lemon supra see also johnson sanders supp aff indeed scheme policing state become extensive state may well end complete control operation college least life bonds college freedom engage religious activities offer religious instruction necessarily circumscribed pervasive state involvement forced upon college lose benefits act seems inescapable content courses taught facilities financed agreement must closely monitored state authority discharge duty ensure facilities used sectarian instruction authority must also involve deeply fiscal affairs college even point fixing tuition rates part duty assure sufficient revenues meet bond interest obligations college find unable meet obligations continued existence viable sectarian institution almost completely hands state authority thus agreement consequent state surveillance ongoing administrative relationships inescapably entails mutually damaging involvements abington school district schempp brennan concurring lemon separate opinion brennan support contrary argument adopts much reasoning plurality opinion tilton richardson disagreed reasoning tilton case reasoning utterly failed explain programs surveillance inspection kind common cases differ pennsylvania rhode island programs invalidated lemon said tilton equally applicable present case see significant difference telling sectarian university teach nonsecular subjects certain building rhode island telling catholic school teacher lemon teach religion vice creation subsidy relationship government polices teaching practices religious school university separate opinion brennan nlike direct continuing payments pennsylvania program lemon incidents regulation surveillance government aid construction grant continuing financial relationships dependencies annual audits government analysis institution expenditures secular distinguished religious activities south carolina arrangement state college less offensive constitution involves asserts direct financial support college state establishment clause forbids far payment public funds directly support sectarian institutions forbids official involvement religion whatever form tends foster discourage religious worship belief cases many struck establishment grounds state laws provided direct financial support religious institutions various forms assistance mccollum board education release time program engel vitale prayer reading public schools abington school district schempp bible reading public schools moreover suggestion constitutionality statutory program aid sectarian institutions dependent whether aid characterized direct indirect flatly refuted decisions today committee public education religious liberty nyquist post sloan lemon post cases went behind mere assertion tuition reimbursement tax exemption programs provided direct aid sectarian schools concluded substantive impact programs essentially direct subsidy state south carolina arrangement identical constitutional infirmities state forthrightly aids college permitting college avail state unique ability borrow money low interest rates college turn surrenders state comprehensive continuing surveillance educational religious fiscal affairs college conclusion compelled involves state essentially religious activities religious institutions employ organs government essentially religious purposes therefore dissent reverse judgment south carolina one denies baptist college charleston sectarian institution one propagation advancement particular religion function purpose institution lemon kurtzman separate opinion brennan south carolina educational facilities authority composed members state budget control board governor state treasurer state comptroller general chairman finance committee state senate chairman ways means committee state house representatives act functions powers authority hereby granted state budget control board incident functions connection public finances state code ann supp outstanding indebtedness pertains certain unspecified capital improvements app thus may indebtedness incurred improvements facilities used religious purposes