Waters of Life Public Charter School, a tiny school on the Big Island, got a reprieve yesterday from the Charter School Review Panel, which voted to keep it on probation until June 15 rather than revoke its charter.

"There has been a tremendous amount of hard work and tremendous amount of progress toward creating a viable school," said panel member Usha Kotner. "I feel like the school is at a tipping point, moving toward the viable school rather than climbing out of the hole."

The elementary school, with an enrollment of 89 students, has had a troubled history. Chartered in 2000, it held classes in various locations in the rural Puna district, and was challenged over health, safety and zoning violations as well as financial mismanagement.

The school was put on probation in 2008 with a mandate to bring facilities and finances up to par. In June 2009, the review panel voted to revoke its charter, which would have closed the school, but the revocation was overturned in court for technical reasons.

When Daniel J. Caluya, principal and director, took over in July 2009, Waters of Life had four satellite campuses in houses, tents and other accommodations. He immediately closed two sites. It now has one campus, in space rented from St. Theresa’s Catholic Church in Mountain View that has passed fire inspection.

But the school ran out of money last school year and had to shut down early, on April 16. It wound up with a $56,000 deficit, according to school officials, that it is struggling to make up this school year.

To make ends meet, the school plans to lay off one teacher and reduce the hours of three support staff members to two-thirds time, Bonnie Gibeault, executive assistant, told the panel yesterday. That will leave five teachers at the school. It expects to end the year with a surplus, Gibeault said.

Waters of Life is in restructuring for failing to meet academic benchmarks, but the principal said students have made big gains in math so far this year with a new curriculum.

"I think you know my work ethic and my stick-to-it iveness," Caluya said yesterday, noting it was his 24th appearance before the panel. "I have given my heart and soul for this school to be respected."

During yesterday’s meeting, four panel members indicated they were leaning toward revoking the charter, questioning the school’s financial viability and noting that it had missed deadlines for submitting documents such as its academic restructuring plan and minutes of board meetings.

"A whole semester has gone by and we have not received your restructuring plan," said panel Chairwoman Ruth Tschumy, who favored revocation.

In the end, the panel voted 8-2 to extend probation, on a motion made by panel member Carl Takamura. The board needed eight votes, a majority of all members, to revoke the charter.

Charter schools are independent, publicly funded schools that are free of many state regulations. They report to their own local school boards rather than the state Board of Education.

The local school board for Waters of Life used to be made up largely of school employees, but has responded to concerns from the review panel by recruiting parents and community members so it can provide independent leadership for the school.

"The school has tremendous heart," said Mary Quijano, local school board chair woman. "The teachers are 100 percent devoted to the kids and to the community."