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Education Minister Hekia Parata says new ideas are needed to solve the problems at Turakina Maori Girls College.
She says no decision has been made to close the historic school, but she has instigated consultation on the possibility because fewer Maori parents are choosing to send their daughters there.
The roll has fallen over the past decade and now stands at 54.
Over the past three years the Education Ministry has been working with the Presbyterian church-run school on issues of curriculum quality, employment and governance.
There have also been problems with the condition of the school hostel.
"There is a problem for boarding schools across the country. They have just become very expensive at a time parents have more choices available to them and Maori parents now have almost 300 kura, kura a iwi, rumaki and bilingual units at schools to choose from," Ms Parata says.
She needs to see the school can solve its financial problems and sustain its roll.
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