The Michigan Court of Appeals has upheld a pair of state budget appropriations that reimburse private schools for the cost of fire drills, inspections and other state requirements.

The decision overturns an April ruling by Court of Claims Judge Cynthia Diane Stephens, who said the 2016 and 2017 budget laws violate the state constitution's ban regarding direct or indirect aid to non-public schools.

It was a 2-1 ruling, with Judges William Murphy and Anica Letica in support and Judge Elizabeth Gleicher in dissent.

At issue is about $5 million in appropriations spread over two years.

The appeals court pointed to previous court rulings that determined the state could support private schools on matters involving health and safety, which was the case here.

The decision ordered the case be returned to the Court of Claims for reconsideration. Stephens can look at "each specific cost or action" to see it goes beyond the bounds of the constitution, the appeals court said, but the entire statute cannot be declared invalid.

Stephens had said that providing money to offset compliance costs "supports the employment of nonpublic school employees" and cedes a "significant degree of control" to private schools -- unlike other allowable expenses such as "shared-time" aid for public schools that enroll private students in non-core elective classes.

The budget appropriations were challenged in a lawsuit filed in March 2017 by the Michigan Association of School Boards, the American Civil Liberties Union of Michigan and groups representing school districts, administrators and parents.

"Clearly, we're not happy with this decision," Don Wotruba, MASB executive director, said today. "Voters have been clear in Michigan that they expect dollars in the School Aid Fund to go to public schools. This is a direct expenditure for private schools to operate."

He said the lawsuit plaintiffs are still considering their options, but "we'll be continuing the legal battle," whether that is appealing to the Michigan Supreme Court or contesting the expenditures as the Court of Claims goes through them item by item.

Brian Broderick, executive director of the Michigan Association of Nonpublic Schools, applauded the decision.

"Michigan's nonpublic schools are pleased with the thoughtful opinion issued today by the Court of Appeals," he said in a written statement.

"The Court appropriately outlined criteria for analysis using Michigan Supreme Court precedence. The health and safety mandates outlined in law are assuredly incidental to teaching and providing educational services to nonpublic school students, do not constitute a primary function or element necessary for a nonpublic school to exist, operate, and survive and do not involve or result in excessive religious entanglement," the statement said.

In 1970, Michigan voters approved an amendment to Michigan's constitution that prohibits using public money to directly or indirectly aid or maintain parochial and other private schools. Courts have interpreted the amendment to bar state support for general educational programs unless the main effect is to further a "substantial" governmental purpose.