Decker v. O'Donnell

661 F.2d 598, 1980 U.S. App. LEXIS 14251
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 9, 1980
DocketNo. 80-1230, 80-1231 and 80-1264
StatusPublished
Cited by5 cases

This text of 661 F.2d 598 (Decker v. O'Donnell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Decker v. O'Donnell, 661 F.2d 598, 1980 U.S. App. LEXIS 14251 (7th Cir. 1980).

Opinion

SWYGERT, Circuit Judge.

In this suit under 42 U.S.C. § 1983 by three federal taxpayers from Wisconsin, the district court issued a nationwide preliminary injunction prohibiting the payment of federal funds for public service employment positions under Title II, Part D of the recently amended Comprehensive Employment Training Act of 1973 (“CETA”), 29 U.S.C.A. §§ 853-59 (1980),1 in elementary or secondary schools operated by religious or sectarian organizations. The substantive basis for the injunction was that such payment violated the Establishment Clause of the First Amendment to the United States Constitution. On appeal we not only affirm the district court but direct it to make the injunction permanent.2

Congress re-enacted the public service employment portion of the Comprehensive Employment Training Act of 1973, Pub.L. 93-203, 87 Stat. 839 (1973), as amended, 29 U.S.C.A. §§ 801-999 (1980), in 1978 for the purpose of providing economically disadvantaged persons who are unemployed with transitional employment in areas of public service so that those persons can develop job skills and techniques that will enable them to become gainfully employed in the private sector. See 29 U.S.C.A. § 853 (1980); see also 29 U.S.C.A. §§ 801, 841 (1980); 29 C.F.R. § 677.51 (1980). Under this program CETA funds are allocated by the United States Department of Labor among various “prime sponsors,” which are primarily state or local governmental units or consortia of local governmental units. See 29 U.S.C.A. §§ 811, 855(a) (1980). The prime sponsors in turn may either hire the CETA participants themselves or subgrant the monies to other governmental entities or eligible private, nonprofit organizations, which then provide employment to the CETA participants. See 29 U.S.C.A. §§ 802(20) & 856 (1980). The only CETA statutory provision regulating placement of CETA recipients in sectarian schools reads as follows:

Participants shall not be employed on the construction, operation, or maintenance of so much of any facility as is used or to be used for sectarian instruction or as a place for religious worship.

29 U.S.C.A. § 823(a)(2) (1980) (formerly 29 U.S.C. § 848(h)).

This action began on October 3, 1978 when plaintiffs filed suit in federal district court against the United States Department of Labor, the Secretary of Labor, and various state and local officials in Wisconsin who were prime sponsors under CETA. The complaint alleged that the defendants’ funding of CETA participants as employees of sectarian schools during fiscal year 1978 violated the statutory limitation quoted above, the Establishment Clause, and the Fourteenth Amendment to the United States Constitution. The plaintiffs requested an order requiring the immediate termination of existing CETA grants for recipients employed at sectarian schools, prohibiting future grants, and requiring the defendants to try to recover federal funds already paid to sectarian schools.3 During the course of the proceedings, all state and local prime sponsors were dismissed from the suit except William O’Donnell, the Milwaukee County Executive;4 two CETA [603]*603participants, the Archdiocese of Milwaukee, and four other dioceses in Wisconsin intervened as defendants.5 In general, factfinding focused on Milwaukee County as a prime sponsor and the Archdiocese of Milwaukee as a subgrantee.

In summary, the Archdiocese of Milwaukee first applied to Milwaukee County, the local prime sponsor, for CETA funding for its sectarian schools in 1977. That application and subsequent ones were approved by William O’Donnell, Milwaukee County Executive. In fiscal year 1978 the Archdiocese funded thirty-nine CETA recipients with approximately $329,000 in federal monies. After applying for funding for sixty-two CETA positions in fiscal year 1979, the Archdiocese received approximately $143,-000.6

On July 31, 1979, after consideration of written submissions, the district court entered an order granting plaintiffs’ request for a preliminary injunction. On August 17,1979 the district court stayed the injunction pending appeal, retaining jurisdiction to modify the terms of the injunction. See Fed.R.Civ.P. 62(c). That same day, the Department of Labor published a final, detailed regulation, which took effect September 17, 1979, concerning the use of CETA funds to pay participants working at sectarian schools. 44 Fed.Reg. 48, 185-86 (1979) (to be codified in 20 C.F.R. § 676.71).7 The [604]*604district court held an evidentiary hearing and allowed additional written submissions, and on February 12, 1980 issued an order denying the motions of the Department of Labor, its Secretary, and the Archdiocese for amendment and reconsideration of the July 31, 1979 order and dissolving the stay ordered on August 17, 1979.

Although the district court dealt with actual past practices in the employment of CETA workers by the Archdiocese in its order of July 31, 1979 and focused on the validity of the September 17, 1979 regulation in its order of February 12, 1980, its analyses on the Establishment Clause issue in its two orders are complementary. First, the court determined that, under current Supreme Court case law, some of the positions funded in the past and some permitted under the regulation would lead by their very nature to excessive entanglement between church and state and unlawful state subsidization of church-related activities. For instance, the Archdiocese had employed CETA workers as reading, mathematics, music, and art teachers. Similarly, the regulation would allow the outstationing of CETA workers as remedial education teachers, their use in connection with speech and hearing therapy performed on school premises, and their use in adult education and recreation programs on school premises operated by sectarian employees. See 20 C.F.R. §§ 676.71(c), (d), & (e)(2), as printed at 44 Fed.Reg. 48, 185 (1979).

With respect to other positions involving face-to-face contacts by CETA workers with students in at least a quasi-edueational setting, the district court concluded that the potential for abuse would require a monitoring system to ensure that public funds are not used to support religious activities. That system would, however, necessarily entangle the government in the operation of the sectarian schools to an impermissible extent. In connection with this analysis the court noted that the monitoring actually used by Milwaukee County in the past had proved inadequate to prevent the use of CETA funds for religious purposes and that the future monitoring currently planned by Milwaukee County and the Department of Labor would be too entangling.

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661 F.2d 598, 1980 U.S. App. LEXIS 14251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/decker-v-odonnell-ca7-1980.