Program for Dropouts to Shut Down : Education: The decision to end the Reseda classes is made after subsidiesare cut. L.A. officials are scurrying to place the students.

An alternative education program in Reseda for school dropouts is scheduled to be shut down today after its officials learned that the Los Angeles Unified School District slashed subsidies for the program this month.

The announcement that the Fully Alive Center’s educational program would close came Thursday morning, sparking a protest by dozens of students who demonstrated along Sherman Way with chalkboards converted into makeshift signs that read “Last Chance for Education” and “Help Us Save Our School.”

“No other school would take me,” said 15-year-old Juan Sanchez of Northridge. “This is my last chance.”

The center’s Youth Educational Support Services program, under contract with the district, provides instruction for 12- to 18-year-olds who have left the school system, whether voluntarily or because of disciplinary problems. The district finances the program based on the hours and work put in by its students, which can be applied toward a high school diploma.

A district audit of student work credits for October, completed Wednesday, found that Fully Alive Center was entitled to only half of the $24,000 it had expected to receive for last month’s work, project Director Laverne D. Weisser said.

Weisser, who founded the program last year, said the center’s owners decided to discontinue the program.

District administrator Barry Mostovoy said district officials were surprised by the decision and were scurrying to place the program’s 130 students into similar centers, back in their home schools or in occupational centers.

“If we’d had a chance to discuss it a little more, they may have been able to cut staff or worked something out where we provided more help to keep the program open till Dec. 20,” the last day of the semester, Mostovoy said. “Then we’d have more time to place these students and counsel them.”

Center officials accused the district’s auditor, Jewell Henderson, of summarily slashing by half the number of work credits tallied by the center’s teaching staff.

Teachers complained that Henderson evaluated the students’ work and decided without explanation that many of the assignments required less time than was reported.

“They’re calling me a liar,” English teacher Tia Torres said. She said it was impossible for district officials unfamiliar with student skill levels to judge work credits accurately.

Henderson could not be reached for comment. Mostovoy said the district, after learning of the center’s grievances Thursday, sent another employee to Fully Alive to review Henderson’s findings.

That review is expected to be completed today.