FALLBROOK -- Plans to open a new charter school campus in Fallbrook do not appear to be playing out as Eagles Peak Charter School officials had hoped.

Interim Eagles Peak director Art Townley said Tuesday that the new "Creative Arts" campus at Living Waters Church in Fallbrook is not currently in the budget to open this fall, and that the Julian Union High School District still needs to approve the plan.

"There seems to be strong interest in the Fallbrook area of having a program there," Townley said. "But there are several legal and financial hurdles that we have to go over before a program is actually established there."

Because Eagles Peak is chartered through the Julian school district, the board must approve the plan, he said.

The Eagles Peak board would also need to formally approve the plans.

The Fallbrook "Creative Arts Academy" would serve students in grades six through eight, marking the latest expansion of the Vista-based Eagles Peak program, which has campuses in Temecula, Chula Vista and San Juan Capistrano.

The academy was originally scheduled to open Sept. 2 at Living Waters, and would provide the standard curriculum for middle school students, as well as a variety of artistic programs, such as music and the visual arts.

Townley said Eagles Peak is scheduled to make a presentation at a Julian school board meeting Thursday night to address a variety of issues raised by the Julian district in a "cure and correct" letter last month.

He said most of those issues had to do with the charter school's budget, and that the new Fallbrook campus would probably be a financial drain during the next fiscal year, which starts July 1.

"A new program will rarely support itself, at least for the first year," Townley said.

The school is looking to cut $3.5 million from its $13 million budget. Because of this, district administrators didn't include the Fallbrook school in next year's budget.

"We have not budgeted for teachers or the rent on the building, but that could be changed if we get the go-ahead," he said.

During an Eagles Peak board meeting last week, school officials also complained about several complications with the plans, including new demands from the church and confusion over zoning, which may not allow for a school on that site.

As of last week, only 18 students had signed up for the Fallbrook campus, which officials expected to have room for 150.

Townley said it would take at least 100 students "to make it a viable program."

"I don't know that it's a risk that the school can afford," Julie Kimball, the school's chief business officer, said during last week's meeting about opening the campus during such a tough economic time.

Townley sounded optimistic on Tuesday about the possibility of opening the campus at Living Waters, which is located 2000 Reche Road, but emphasized that several potential roadblocks remain.

"Until we get this final decision from Eagles Peak board and the Julian board, we won't go out and aggressively try to get parents to sign up," he said.

Staff writer Stacy Brandt contributed to this report. Contact staff writer Tom Pfingsten at (760) 740-3516 or tpfingsten@nctimes.com.