Groups appeal decision upholding `faith-based' bias. (AU Bulletin).

Two civil liberties groups plan to appeal a federal district court decision allowing a publicly funded Baptist youth agency to discriminate in hiring on religious grounds.

In October 1998, the Kentucky Baptist Homes for Children (KBHC) fired Alicia Pedreira, a family specialist, because she is a lesbian. Despite exemplary job performance, Pedreira was terminated because Baptist officials said homosexuality conflicts with Christian beliefs that are central to the agency's mission. Pedreira was dismissed despite the fact that $13 million of the Baptist home's $19 million budget in 1999 came from the state government.

Americans United and the American Civil Liberties Union of Kentucky filed the Pedreira v. Kentucky Baptist Homes for Children case in April 2000, arguing that the facility was using public funds to advance its religious beliefs.

In July, Judge Charles Simpson III said state and federal laws barring religious discrimination do not protect gay employees at religious agencies, even if the facilities accept tax dollars. Though Simpson also ruled that legal questions over public funding of a religious institution could go forward, AU and the ACLU have decided to appeal the judge's conclusion on the discrimination question.

Plaintiffs in the case include Pedreira, three members of the clergy and a civil rights activist. A couple whose child was helped by Pedreira at the Kentucky children's home are also plaintiffs. The couple said Pedreira was the first counselor to make a difference in their son's life.

The KBHC, meanwhile, is looking for private contributions to lessen the facility's dependence on state funding. Starting in January, the Baptist Homes plan to begin a limited fund-raising drive, with a broader push coming later.

"We'd like to raise enough money in the next three to four year that we can tell the state: `Keep your money, we'll still serve your kids,'" KBHC President William Smithwick told the Kentucky Baptist Convention in November.