A student who sued her school district over a requirement that she wear an ID tag equipped with an RFID chip that allowed the school to track her movements lost her court case yesterday.

The case filed in a Texas federal court, was a strange one. San Antonio sophomore Andrea Hernandez objected to the RFID chip on the basis of theology, not privacy — she believes that the tracking tag is the Mark of the Beast warned of in the biblical book of Revelation. As a result, she contends that her religion forbids her from wearing the tag, and that the school’s tag requirement is a violation of her First Amendment rights. As her father put it in a September letter, “it is our Hell Fire Belief that if we compromise our faith and religious freedom to allow you to track my daughter while she is at school it will condemn us to hell.” In a later meeting with a district official he also expressed concern that wearing the chip might cause cancer.

Hernandez was suspended later that month for refusing to wear her school-issued ID, and told that she would not be allowed to return without it. District officials gave her the option of transferring to a school that didn’t use the tracking chips. Instead she sued, and won a preliminary injunction against the suspension. Yesterday’s ruling lifted that injunction and freed the district to transfer her to another school. (Hernandez is likely to appeal.)

So where does the victory come in? Well, at a relatively early stage of the process, the school offered to give Hernandez an ID badge with the RFID chip disabled. Her movements wouldn’t be tracked, her attendance wouldn’t be automatically logged — it’d just be an ordinary ID on an ordinary lanyard.

Hernandez refused this accommodation on the grounds that even a chip-less ID — which her father referred  to as a “symbol” of the RFID tracking program — constituted forced speech in favor of the program itself. The court rejected that argument yesterday.

It’s not clear whether Hernandez would have prevailed in court if the school hadn’t offered the compromise that it did, but the language of the court’s ruling made it clear that she would have been on stronger ground. (They did not address the question of the constitutionality of the ID requirement on privacy grounds, as Hernandez explicitly disavowed such a claim.)

Yesterday’s ruling, then, leaves many of the core issues surrounding student RFID tags unresolved. But it does provide support for the idea that allowing students to opt out of RFID requirements is a reasonable accommodation, as well as raising the public profile of the opt-out path for those students who might be interested in it.

One note about the RFID requirement. Although yesterday’s ruling claimed that the tags “are expected to improve [school] safety by allowing school staff to know the whereabouts of a student that may be missing or unaccounted for in the event of a fire alarm or other emergency evacuation,” that’s not the reason that the chips were added.

In Texas, as elsewhere in the country, state school funding is set partially on the basis of student attendance. When students are absent, funding goes down. Equipping ID cards with RFID, and mandating that students wear the IDs on campus at all times, allows the school to automate attendance-taking and include students who arrive late, leave early, or otherwise fall through the roll-call cracks in their attendance reports. More accurate record-keeping means more state money.

As is so often the case these days, this new — and potentially problematic — education policy is driven primarily by the ongoing crisis in public school funding.