**Editor’s Note: On July 7, the Assemblies of God Northern California/Nevada district finalized the closure of Bethany University. The 92-year-old private Christian college is working on the potential sale of the campus to another Christian university and also determining where its records will be kept.
When Rev. Lewis Shelton joined Bethany University as interim president in 2008 to replace Max Rossi, he knew the small Christian college was struggling financially.
“The mountain was high, and the odds were against us,” Shelton, 65, said over a cup of coffee last week.
“There were accreditation issues that were tied to the financial struggles of the school over the last three decades.”
But the university received accreditation from the Western Association of Schools and Colleges in February 2009, quelling some fears.
“With accreditation, there was a great sense of hope,” Shelton said.
In the past six months, however, money began to run dry, and Bethany’s trustees put the call out for major donations.
According to some estimates, at least one donor stepped forward with a potential gift of $10 million to $20 million, which would have completely changed the financial outlook of the university.
“I believe we made some significant progress,” Shelton said. “The money just didn’t quite follow quickly enough. Unless you have funds, you can quickly become a mirage.”
Without funding, Shelton said, the school would not have been able to guarantee contracts or services for students. He said it became an ethical issue.
“If you cannot perform on that, integrity requires you to make decisions,” he said.
What happens to students?
The University has developed a “teach-out” plan with WASC for the two summer graduate programs (clinical psychology and teacher education) that will conclude Aug. 12. Bethany’s staff is negotiating with several universities to find a place to act as a depository of its academic and financial records.
A chunk of the records are in electronic form, but much is not.
“Ninety-two years of history,” Shelton said, “you don’t stick it in a shoebox and put it in the closet.”
The teach-out plan is scheduled to be in place shortly after Aug. 1, and an announcement will be made on the university’s website, www.bethany.edu.
Bethany has signed memorandums of understanding with a dozen colleges, including Vanguard University, William Jessup University and others, to allow more than the 300 displaced Bethany students to attend a new institution in the fall with similar tuition and costs.
Faculty, staff at loose ends
Because Bethany was a nonprofit, it was not required to pay into government unemployment programs. Thus, there will be no unemployment aid from the government for the 122 people on the school’s payroll, Shelton said.
Some longtime faculty members have retired, others have found new positions and still others continue to look.
“The timeframe was the worst possible scenario, because teachers sign contracts in March,” Shelton said.
Cutbacks in state education funding make it even harder to find a new place, he noted.
“We choose to believe God will find a place for these people,” Shelton said.
Two funds, the Dwight Wilson Memorial Fund and an account through the Bethany Foundation, are “dedicated to the benevolence of the faculty and staff,” Shelton said. Money will be distributed in a grassroots-type effort to former employees based on their need.
Employees also had a matching retirement plan with the university.
A bare-bones administrative staff remains on the campus for now to work with students and maintain some day-to-day operations at the university.
Young Enough to Serve, a local ministry, helped professors move out of their offices over the weekend while serving them breakfast as a farewell.
Future of campus unclear
Several Christian universities have shown interest in purchasing the Scotts Valley campus from the Bethany Foundation.
The most promising candidate appears to be Olivet University, a Presbyterian university in San Francisco, according to a recent message to alumni from Jay Herndon, on the Bethany board of trustees.
Representatives from Bethany and Olivet are in negotiations.
A final goodbye
Shelton thanked the Scotts Valley community for the support Bethany received while he was president.
“The community has been very helpful and embracing,” Shelton said.
He thanked former mayors Randy Johnson and Jim Reed, as well as city planner Taylor Bateman, who worked with the school on plans for the half-built cafeteria after the original burned down in 2009.
Shelton mentioned the many students who spent time in the community as interns and volunteers.
“I really believe Scotts Valley is grieving the loss of the university, even though many may not have even known the university,” Shelton said. “There have been a lot of people who have voiced their disappointment to me.”
Shelton, who attended the university and whose granddaughter was a freshman last year, returned to Oregon last week.
“I have a deep appreciation for the people I’ve had the privilege of to work with over the past three years,” he said. “And I have love for the students. They’ve stimulated this old man and inspired me.”
