HILO » The state's plan to convert Kulani prison into an academic and military training camp for teenagers is being delayed a year.

The Hawaii National Guard in July announced plans to open a Youth Challenge Academy at the former site of Kulani prison on the Big Island next month.

But then officials realized program employees must receive a full year of training before they begin working with students, said Brig. Gen. Gary Ishikawa, the state's deputy adjutant general. They also needed to wait for federal funding to be approved for the new camp.

The Guard now aims to welcome its first class of 100 students at Kulani in early 2011. It expects to enroll two classes each year.

The state shut down Kulani prison in October. Closing the prison is saving the state $2.8 million per year.

The Youth Challenge Academy takes in 16- to 18-year-olds on course to drop out of high school. It puts them through a five-month course that will allow them to earn a high school diploma or the equivalent.

The Guard already has one campus in Hawaii, at Kalaeloa on Oahu. The Kalaeloa academy, which opened 15 years ago, teaches military discipline and life-coping skills to about 300 students every year. The program costs Hawaii taxpayers $16,000 a year per student and boasts a graduation rate of more than 80 percent.

The goal is to teach “;life skills,”; like farming, auto mechanics and cooking, Ishikawa said.

The general wants Kalaeloa employees help the Kulani program get started.

“;I can see us hiring by maybe February, March,”; he said. “;Eventually, we're going to be hiring 58 folks. We will definitely be trying to hire from Hilo because we don't pay relocation costs.”;

Ishikawa said Hawaii will compete with other states for federal block-grant funding to pay for the academy.

“;It all sounds like we're getting ready to be approved,”; he said. “;We are definitely in a small group (of states) that is going to be looked at.”;

Last month, Gov. Linda Lingle proposed upgrading Kulani's facilities with $1.8 million in loans.

Ishikawa said the money would be spent building a new water-catchment system and filtering plant, replacing the roof atop the auto mechanics shop, adding solar power panels and installing a video-surveillance system.

“;It's to protect the youth,”; he said of cameras and an electronic gate that he wants designed to keep out would-be intruders.