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AUSTIN, Texas (AP) - Locator chips embedded in student IDs by a Texas school district has set off a debate over privacy and religion after one student refused to participate.

San Antonio's Northside Independent School District put the chips in the ID badges of 4,200 high school and middle school students.

School officials say they could receive up to $1.7 million in additional state funding if the technology enables more accurate attendance counts.

But the parents of a 15-year-old sophomore say the potential of more school funding doesn't outweigh privacy and religious rights.

A judge in San Antonio had been expected to decide Wednesday whether the student could transfer. But the family's attorney says the hearing was cancelled after the school district asked that the case be moved to federal court. A new hearing hasn't been set.