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A federal appeals court refused efforts by some state charter schools to get federal aid.

In a unanimous ruling Monday, the Ninth U.S. Circuit Court of Appeals in San Francisco rejected arguments by the Arizona State Board for Charter Schools that they are entitled to the same federal dollars as all other public schools in Arizona.

Judge Michael Hawkins acknowledged that state law allows for-profit corporations to own or operate charter schools, and that charter schools are public schools.

But Hawkins said that is irrelevant because the federal law defining which schools are eligible for federal aid spells out that only nonprofit schools are eligible. And that language, he said, is "plain and unambiguous."

Monday's ruling is a setback not only for the charter board, which is a state agency, but for more than four dozen for-profit private schools in the state.

The problem, said Mary Ellen Simonson, attorney for several affected schools, is as public schools they cannot turn away any student. And federal law requires that public schools provide special services for the students as necessary.

But Monday's ruling, which upholds the position of the U.S. Department of Education, means these schools are not entitled to federal funds provided to schools which have students in poverty or with special needs.

Simonson said since the initial decision by the federal agency, the affected schools "have not been paid significant amounts of money." She said while the dispute has made its way through the courts, the cash has been placed in a special account held by state school Superintendent Tom Horne.

State officials estimate the amount at issue is more than $1 million a year. As of last year — the most recent figures readily available — the amount in that account was about $3.6 million.

Hawkins said Congress was clearly aware of what it was doing when it approved the restrictions. He noted, for example, the law specifically contains a provision allowing charter schools to contract with for-profit corporations for services without losing federal funds. The judge said if for-profit schools were eligible for aid, then the provision would be unnecessary.

Simonson said she had not yet studied the decision to decide whether to take the case to the U.S. Supreme Court.

Monday's ruling also runs contrary to a 2004 formal legal opinion by state Attorney General Terry Goddard. He said the for-profit schools among the 375 charter schools are public schools under state law and entitled to the federal cash.

Arizona is one of the few states that permit for-profit corporations to own or operate charter schools.