"We are dealing with the most problematic, high-risk pupils, with less than what the school can offer them," he said.
Aoraki Alternative Education (AAE) is an organisation for youths aged 13 to 16, who have been taken out of mainstream schooling because of repeated suspensions or expulsions, or because they have a history of dropping out.
Mr Waa said AAE dealt with youths who had problems ranging from behavioural issues to being in trouble with the law.
He said the pupils at the alternative education provider needed "specialised intervention", but this cost money the organisation did not have.
"We just don't have the ability to employ specialised help."
AAE has 13 pupils on site this term.
A majority of its pupils have been involved with Youth Aid.
Timaru Police Youth Aid officer Constable Stewart Mori, of Timaru, said although police saw only a small percentage of Timaru youth in total, the youth they dealt with created a "huge amount of work".
Mr Waa said pupils' behaviour would be more likely to improve if AAE could afford to give them resource teachers for learning behaviour (RTLBs) - teachers who dealt with pupils' learning and behavioural issues one on one.
AAE is not eligible for continual funding from local funding agencies, because it is not a trust.
Aside from some substantial help AAE received from the government last year, it had been almost a decade since it had received an increase in funding, and that was when it opened, Mr Waa said.
A Ministry of Education spokesperson said alternative education was under review, and this included a review of funding.
The outcome of the review would be announced soon.
Mr Waa said a large increase in AAE's funding was vital.
"Serious things need to happen.
We're not talking $10,000.
Everything at the AAE premises needs changing.
"We have scabbed to provide the basics. We have to cut, scrimp and save where we can, and also figure out how to provide for our kids.
"Our computers are old and we're running on a dial-up internet connection.
"A better building shows value for the pupils, and they will act in a way that is more valued. It would tell them, `Despite what you have done, you are still worthwhile and deserve an education'," he said.
Mr Waa wanted to be able to afford to relocate the facility away from George St in the city centre.
This would mean pupils could escape public scrutiny more easily, and release any extra energy by doing physical activity on a grassy area outside, he said.
- Cerisse Denhardt