Posted on Wed, Feb. 08, 2012

The Salvation Army has quashed plans for a charter school at its Red Shield Center, citing financial concerns.

Capt. Michael Paugh said Wednesday the Northern California division leadership denied the program and the project would not move forward at this time.

"It's something we can look at in the future," he said.

The Salvation Army's Modesto advisory board also voted against the project, Paugh said.

"How can we start another program when we are operating in the red? You have to consider, even though it would have had its own funding, you have the wear and tear on the building, the emergency issues that come up," Paugh said.

A recent $1.7 million bequest by Harold and Elinor Sauerwein, by Salvation Army rules, must be put half in a capital facilities fund and half in an endowment fund, he added. Only interest from the endowment can go to general expenses, he said.

Paugh said The Salvation Army's downtown Modesto center, which includes a shelter, a food bank and child development center, has about a $200,000 yearly deficit. The Red Shield Center runs about $70,000 in the red.

"We're just trying to get our head above water so we can go forward," Paugh said.

The Red Shield Center sits next door to Hanshaw Junior High on Las Vegas Street in south Modesto. It offers after-school and evening programs, homework help and an evening meal for about 100 children a day.

Center leader Capt. Martin Ross proposed a lease arrangement with public charter school Great Valley Academy to use Red Shield facilities during the school day. The center has classrooms, bathrooms, a gym, kitchen and dining areas.

Great Valley Academy operates two schools, its original location at Woodrow Avenue and Tully Road in north Modesto, and a Manteca school that opened this year. Both are public charters, which do not charge tuition.

Great Valley formally proposed the charter to Modesto City Schools, which includes the Red Shield Center within its boundaries. Charter schools must get approval from an oversight agency, either a school district or the county or state boards of education.

Modesto trustees declined the charter in a split vote at the board's Jan. 17 meeting.

At the time, Great Valley founder Eldon Rosenow said he had anticipated the rejection and would seek approval next from the Stanislaus County Board of Education, which oversees Great Valley's original school.

Rosenow was not available Wednesday for comment.

Bee education reporter Nan Austin can be reached at naustin@modbee.com or (209) 578-2339.