Military school steadies finances.

Byline: Anne Williams The Register-Guard

VENETA - Almost two months after narrowly dodging closure, Willamette Leadership Academy has boosted enrollment, chipped away at its debt and earned a nod of support from the Fern Ridge School Board.

The Fern Ridge board, which holds the reins on the district's contract with the military-style charter school, agreed this week to forgive $6,000 in back rent for the lease of Central Elementary School. The district charges $3,000 a month - money it wouldn't otherwise have if Central, closed four years ago, was still empty.

``We still see that they fulfill a very real need,'' Board Chairwoman Kris Galloway said of the school, which serves nearly 100 middle and high school students, many of whom have struggled with academic and behavioral problems elsewhere. ``We're all really committed to it and want to help them resolve the problems.''

That being said, the board has asked for and received proposals showing how the academy plans to raise enrollment, balance its budget and ensure financial stability.

"The board, I think, spoke to the extent that we want to work with them, but we don't want to be doing this every year," Fern Ridge Superintendent Ivan Hernandez said.

In late January, two weeks after telling parents and students it would take a miracle to avoid closure, the academy's board of directors voted to keep the school open.

Parents had raised money aggressively and pledged to keep up the momentum.

Academy founder Bill Lay, who goes by the title "colonel," said the debt has been winnowed down, from about $41,300 to $38,000, and that the academy is steadily paying the district back for excess per-pupil state funds it received early in the year based on inflated enrollment estimates.

The school had predicted 150 students, but only half that many showed up.

Through their sponsoring district, charter schools receive 80 percent of the per-pupil allocation - approximately $5,200 - for each middle school student and 95 percent for high school students.

The district keeps the remainder for students who live within its boundaries. It splits the remainder with the home district of any students who transfer in from elsewhere.

Between that revenue, the rental fee and the mothballing costs the district would otherwise incur at Central, Hernandez said the district will still come out ahead financially on its contract with the academy, to the tune of about $30,000.

Lay said the academy is considering capping its enrollment at around 105 so it can keep a reduced staff.

A cap is "something we've never done before," he said, noting that he dislikes the idea of turning any student away, but believes it will be simpler and more cost-effective.

Galloway said she was satisfied with the proposal Lay gave the board this week.

"I think they're really looking clearly and with very open eyes at what needs to be done," she said.

Hernandez also has put the academy on notice that it may not be able to stay in Central Elementary.

The 1,490-student district already has seen growth at the elementary level, and with a flurry of housing starts in the area he believes it may need to reopen Central - possibly as early as the fall of 2008, but more likely in 2009.

That would still leave vacant Noti Elementary available, although Lay said he's not sure the location - eight miles farther from Eugene - would work.

"I would rather have something else for Plan B," Lay said.