The village of Kiryas Joel in Orange County, New York, is a religious enclave of Satmar Hasidim, practitioners of a strict form of Judaism. In 1977, the Satmars incorporated the village within the town of Monroe after negotiating boundaries that included only the 320 acres they owned and inhabited. The village has a population of about 8,500 today, and its residents interpret the Torah strictly, segregate the sexes outside the home, speak Yiddish primarily, and educate their children in private religious schools, with boys attending the United Talmudic Academy and girls attending Bais Rochel.
These private schools do not offer special education services to handicapped children, who are entitled to such services under state and federal law. Starting in 1984, the Monroe-Woodbury Central School District provided these services at an annex to Bais Rochel, but ended the arrangement in 1985 following the Supreme Court's decisions in Aguilar v. Felton and School District of Grand Rapids v. Ball. Handicapped children from Kiryas Joel were then sent to public schools outside the village, leading most parents to withdraw them due to the children's panic, fear, and trauma from the cultural differences, with some seeking administrative review.
By 1989, only one child from Kiryas Joel attended Monroe-Woodbury's public schools. In response, the New York Legislature passed Chapter 748 of the 1989 New York Laws, which constituted the village of Kiryas Joel as a separate school district with all the powers of a union free school district. The new district currently operates only a special education program for handicapped children, serving just over 40 full-time students, while other village children remain in parochial schools.
Several months before the new district began operations, the New York State School Boards Association and respondents Grumet and Hawk brought an action challenging Chapter 748 under the National and State Constitutions. The trial court ruled for the plaintiffs on summary judgment, finding the statute unconstitutional under the Lemon test. A divided Appellate Division affirmed, and the New York Court of Appeals affirmed on the federal Establishment Clause question while reserving the state constitutional issue. The Supreme Court stayed the mandate and granted certiorari.
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