A state appeals court has upheld a decision that allows Gov. Bobby Jindal's statewide voucher program to begin in August.
Teacher unions and local school boards sought to block the start of the program as they challenge its constitutionality.
But in a 2-1 decision, a three-judge appellate court panel agreed with a lower court judge that an injunction couldn't be issued, citing a law that bars injunctions if a state agency chief says it would cause a deficit.
Superintendent of Education John White and the governor's top budget adviser, Commissioner of Administration Paul Rainwater, said in affidavits that the Department of Education would face a deficit if the laws creating and funding the voucher program were blocked.
A hearing on the constitutionality of the education laws is set for October.