The last-minute addition of the construction and scholarship money to the 2006-08 state budget was engineered by Senate President David Williams, a Burkesville Republican whose district includes the university.
The state had not released any funds while the legal challenge was pending.
The court?s opinion, written by Justice Lisabeth Hughes Abramson of Louisville, said the appropriation was a clear constitutional violation.
?If Kentucky needs to expand the opportunities for pharmacy school education within the commonwealth, the Kentucky General Assembly may most certainly address that pressing public need, but not by appropriating public funds to an educational institution that is religiously affiliated,? Abramson wrote.
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