Since July, the school had spent more than $500,000 anticipating higher budget and enrollment numbers, a decision that had potentially placed the school in jeopardy.

The money was spent on items ranging from sod and furniture to salaries and legal fees.

"If we had not reduced staff, well, they would have run out of money," said Rob Muhlestein, the new managing director of the school who is also director of nearby American Leadership Academy. "And if they had continued with that plan, the right thing, in my mind, would have been to shut it down."

The school's critical error, he said "was not knowing exactly how many kids were going to come."

Liberty Academy, which is in its second year, has had five directors in its first year, a combination of permanent and interim staff.

Muhlestein is being paid as an independent consultant to the school. Liberty and American Leadership Academy are developing a partnership agreement. Three of American Leadership's board members have now joined Liberty's board.

The school previously was managed by the private company Excel Education.