Private schools cite increased costs for higher prices

Tuition at three of Hawaii’s largest private schools — ‘Iolani School, Mid-Pacific Institute and Punahou School — will hit the $20,000 mark for the first time next school year as most schools plan hikes of between 3 percent and 7 percent.

With year-over-year increases at the three schools ranging from $750 to $1,200, tuition hikes are starting to creep back to levels seen during better financial times, when schools charged $1,000 to $1,500 more each year.

During the worst of the economic crunch, schools tried to limit increases to $300 to $500 or kept tuition flat.

Next year’s higher rates come as more private schools are beginning to see enrollment numbers rebound following declining or stagnant growth in the years after the recession. Mid-Pacific, for example, is at an all-time high for enrollment, with 1,550 students at its Manoa campus.

There are at least two exceptions next year: Island Pacific Academy in Kapo­lei will roll back tuition 5 percent, while Saint Louis School will keep its tuition flat.

For those schools raising tuition, officials cited higher personnel costs, including faculty raises and pricey health benefits, for next year’s increases.

Still, school officials say they’re trying to keep tuition hikes minimal.

"We struggle every year with trying to keep it modest," said Punahou President Jim Scott. "It’s a threshold year because we’re going over $20,000."

Tuition will increase to $20,700 this fall at Punahou, up about 3.8 percent — or $750 — from this year.

Scott said next year’s increase will cover 3 percent raises for teachers, higher health insurance costs and professional development.

"The majority of the increase is so that we can attract, retain and support the best teachers we can," he said.

He added, "The real cost of our education per student is $26,000. … The difference is met through our endowment — now at $235 million — and fund-raising $12 million or $15 million a year. Every tuition-paying parent is being subsidized by fundraising and the endowment."

Scott described enrollment as strong, at 3,750 students, adding that the school gets 4.5 applications for every opening. Enrollment had dropped slightly during the 2011-12 and 2012-13 school years, before returning to pre-recession levels, according to data from the Hawaii Council of Private Schools.

‘Iolani School will raise tuition to $20,100 — up about 6 percent or $1,200 over this year — with most of the increase needed to cover higher faculty costs.

"We try to keep costs down as we continually work to enhance the lifelong value of an ‘Iolani education," spokes­woman Cathy Lee Chong said. "One of our highest commitments is to maintain exceptional faculty, and that’s really where our expenses go."

‘Iolani has seen enrollment slightly rise each year since 2008-09, and is at 1,880 students this year.

At Mid-Pacific, tuition will cost $20,000 next school year, a $950 or 5 percent increase over this year, which President Paul Turnbull said will go toward supporting faculty and the school’s arts and technology programs.

Hawaii Preparatory Academy in Wai­mea passed the $20,000 mark a few years ago and remains the state’s most expensive private school, with high school tuition for day students increasing to $23,100 next school year, a 3.6 percent increase. The increase will cover higher operating costs, including faculty salaries and benefits and utilities at the Hawaii island school, which has about 600 students, said spokes­woman Phyllis Kane­kuni.

Kamehameha Schools’ flagship Kapa­lama campus, with 3,192 students, remains one of the most affordable private schools. Tuition will increase 5 percent to $4,234 next year to cover increases in teacher compensation and program costs, said Vice President of Campus Education Rod Chamberlain.

Private schools educate about 17 percent of the isles’ school-age children, nearly twice the national average for private school enrollment.

Enrollment dipped mostly at the state’s small and medium-size schools during the recession, in part because they can’t offer much financial aid to families, unlike the larger schools with established multimillion-dollar endowments.

At ‘Iolani, for example, 21 percent of students are receiving need-based financial aid this year, with the average award totaling $9,000. Nearly 20 percent of students at Punahou get financial assistance from the school, where the average award is $10,000. And Kame­ha­meha’s Kapa­lama campus provides 66 percent of students financial aid awards of $4,500, on average, to include boarding students.

Nationally, private school enrollment dropped sharply for the 2009-10 year and stayed relatively flat before starting to climb back two years later.

"After years of growth there was a lot more fluctuation in the years immediately following the recession — more than we’d ever seen before — and now enrollment has stabilized and we’re starting to see an uptick," said Myra McGovern, spokes­woman for the National Association of Independent Schools.

Private school officials point out that tuition in the islands costs less than on the mainland.

Median day tuition across all grades for National Association of Independent Schools members is $22,654 this school year. More than 30 private high schools on the mainland are charging over $40,000 in annual tuition.

The tuition price tag was one factor Clare Hanusz said her family considered when deciding to pull their 12-year-old son, Ali, out of Mid-Pacific next year.

"Cost is a part of it," said Hanusz, an immigration attorney in Hono­lulu. "We don’t think a private school education is essential to get a good foundation in life, and I know that runs counter to how a lot of people think, especially here in Hawaii. But we feel our children can get a good education at public school."

Hanusz said she and her husband, a professor of political science at the University of Hawaii-Manoa, "thought if we’re spending $40,000 a year for both kids to go to private schools, what’s going to be left for college? And the answer is nothing."

The family is still deciding between Niu Valley Middle School in East Oahu or SEEQS (an acronym for the School for Examining Essential Questions of Sustainability), a public charter school that launched this year in Kai­muki.

"We both make pretty good incomes," Hanusz said. "We’re very fortunate in that way, but still, we would have no savings left for college or travel or those things that make life meaningful, and the financial trade-off wasn’t worth it."