The state's Charter School Review Panel has revoked the charter of Waters of Life Public Charter School on the Big Island, the first school ever to be placed on probation and subsequently closed by the governing body of the state's independent public schools.

Citing "ongoing problems and deficiencies" at the school, including a "historical pattern of financial instability and poor fiscal management" and its chronic issues with inadequate school facilities, the panel voted unanimously Thursday to permanently revoke the school's charter.

As a result of the decision, panel officials said, Water of Life PCS, which serves about 185 students and has 10 teachers and four teacher's aides, will not open next school year.

"The revocation of Waters of Life's charter was a difficult one for the panel, but a correct one we believe. We understand what this means for the teachers, parents and children at the school, and we will assist them in every way possible in their transitioning to a new school for this coming school year," panel chairwoman Ruth Tschumy said in an e-mail statement.

Charter School Review Panel chairman Alvin Parker did not return multiple phone calls requesting comment.

Attorneys for the troubled Big Island school say they are seeking an injunction against the panel and its recent decision.

Katheryn Crayton-Shay, director of Waters of Life, referred questions to the school's attorney, Gary Zamber. He said the review panel acted in an "unlawful fashion" when it voted to close the school.

SCHOOL PROTESTING

Waters of Life officials argue that the Charter School Review Panel does not have the authority to close a charter unless imminent health and safety problems are found. They also said that neither the state Board of Education nor the review panel has established the legally required rules to place a charter school on probation or revoke a charter.

"They don't have any lawful basis, especially given the substantial improvements at the school over the years, to close the school," Zamber said.

He said the school has made substantial improvements in its bookkeeping since being put on probation on June 12, 2008. He also said the school has resolved most of its ongoing facility issues.

Zamber would not say for sure whether the school will close. He said he is advising school officials to "challenge the ruling, but continue to work with ... (the review panel) in good faith."

The school's Web site says "Open enrollment is under way at this time."

Since it opened nine years ago, Waters of Life has received intense scrutiny for its financial management and its school facilities.

When Waters of Life was chartered by the state Board of Education in 2000, classes were held in two houses in rural Puna. Authorities investigated reports of overcrowding, inadequate bathroom and kitchen facilities, and fire code violations.

For years, Waters of Life has moved from site to site because of allegations that the school was violating health and safety codes and zoning requirements.

In all, Waters of Life has moved from more than half a dozen locations over the past nine years. The school currently is housed in three locations: Puna Congregational Church, St. Theresa's Catholic Church and Seaview Performing Arts Center for Education.

But alleged mismanagement of school funds is what has worried state officials the most.

FINANCIAL ISSUES

About a year ago, the panel placed the school on probation, reporting that the school "exhibits a historical pattern of financial instability, indebtedness and poor fiscal management," and concluded that "WOLPCS is not operationally viable, specifically, WOLPCS is not financially viable."

At the time, it was the first charter school to be placed on probation by the panel.

The panel concluded that the school submitted "multiple versions" of its financial statements, and also found the school "is unable to produce timely, accurate and meaningful financial statements and budgets," according to the order.

Lawmakers officially scolded school administrators in a concurrent resolution approved in the 2009 legislative session. The resolution cited an independent auditor's findings, including that the school was unable to account for $816,337 in salaries and wages in the 2005-06 school year.