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The Honolulu Advertiser

Posted on: Tuesday, February 15, 2005

Charter school to learn its fate

By Johnny Brannon
Advertiser Education Writer

After months of controversy, a Big Island charter school may learn today whether state education officials will try to help it succeed or move to shut it down.

The Na Wai Ola Waters of Life school in Puna has long been under state scrutiny for alleged mismanagement, and last month was the focus of a critical audit. The audit also said that state oversight mechanisms for charter schools are defective.

Waters of Life says it has undergone sweeping management changes and corrected problems cited in the audit, or is now fixing them. The school says it is financially sound and has a waiting list of students hoping to enroll.

A state Board of Education panel is scheduled to consider today whether to revoke the school's charter and try to close it. It's unclear whether the school would close immediately if that happens, however.

A swift closure "would be devastating because all of a sudden all these students, in the middle of their spring semester, practically, would be basically dumped on the doorstep of other schools — public schools they don't want to go to," said Waters of Life attorney Ted Hong. "No other charter schools would be available, because the inn is full in terms of other charter schools on the Big Island."

The school board has given no firm indication of its intentions. But Waters of Life has had a rocky history that put it on the board's radar screen long ago.

The Department of Education tried to shut the school down in 2002 for alleged health, safety and zoning violations, as well as overspending. A judge later ruled that the school must first have an opportunity to fix problems the state identified.

The troubles were complicated by frequent staff turnover and a court dispute with neighbors who opposed the school operating on a 28-acre farm near Kurtistown.

The school has dropped that plan but says buying the farm turned out to be a shrewd investment, because its value has skyrocketed with the booming real-estate market, putting the school on firm financial footing.

The audit found that the school repeatedly failed to file mandatory financial reports while spending $2.6 million in state and federal money over four years, and did not take legally required precautions in hiring staff. The report also found that Hawai'i's charter school law is poorly written and led to poor oversight of the state's 27 charter schools.

More than 130 students are enrolled in Waters of Life, and classes are held at three locations. Elementary students attend classes at the Ainaloa Longhouse, middle-school students are taught in the City of Joy Christian Fellowship sanctuary, and high-school classes are held at the Girl Scout Council of Hawai'i center in Kea'au.

Hong stressed that the audit did not allege that any money was missing or had been improperly spent. He said the report was fair in pointing out problems.

"That was a very good, objective report, because it gave everybody — the Board of Education, the state Legislature, the school — very clear guidelines on what they needed to do to be in compliance with the law," he said. "It was basically like someone shining the light and showing you where the stepping stones are."

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8084.