The Education Review Office has "serious concerns about the safety of students" at Felix Donnelly College in Tuakau, south of Auckland, and has recommended steps that could lead to the closure of the school.
The decile 1 school is spread over six sites and has a roll of 56 students with learning or social difficulties.
It was originally established to educate secondary school students under the care and protection of Youth Justice and Child, Youth and Family, but now takes students from six trusts.
ERO has been called to review the quality of education at the school four times within four years.
Its latest report reveals staff were bullying other staff as well as students and were teaching in dilapidated, unhygienic classrooms.
ERO area manager Elizabeth Ellis said the college had failed to improve the unhygienic and unsafe learning conditions raised in previous annual assessments.
At some of the sites students of a wide range of ages and behavioural needs were taught together in cramped classrooms, and ERO said it was detrimental for younger boys to be exposed to older youth with severe behavioural difficulties.
One site run by Tirohonga Trust was closed during the review because it was deemed unsafe. Some students also absconded from another site during the course of the ERO review.
Ms Ellis said the principal and commissioner were obliged to spend most of their time managing crises in relation to staffing, property, resource provision and students' safety.
In concluding her report, she recommended that "in light of the seriousness and ongoing nature of the concerns identified" the Secretary for Education consider advising the Minister of Education, Anne Tolley, to begin the process that could lead to the closure of the school.
Bruce Adin, regional manager at the Ministry of Education, said the ministry was considering the recommendations in the report.
"We will provide advice to the Minister of Education, who will make any decisions regarding the future of the school."
A commissioner was appointed after a damning ERO report in October 2006 which told of caregivers at the school dishing out cigarettes as a reward for students displaying good behaviour. Since 2006 three trusts have added students to the school, worsening the pressures on staff.
Unhygienic classrooms, staff bullying put college's future in doubt
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