Private-school costs rise

The cost of a private-school education will go up slightly in the fall as Hawaii’s largest campuses plan tuition hikes of 3 to 6 percent.

School officials say they’ve tried to keep increases to a minimum as general operating costs — most notably health care premiums for employees — have continued to climb. Several schools are increasing their financial aid offerings along with tuition.

Hawaii’s private schools educate about 20 percent of school-age children here, nearly double the national average.

Most schools say tuition increases will go toward competitive salaries for faculty and staff and improvements to academic programs. Hawaii private schools typically increase tuition annually.

"The cost of running a school is very expensive, with our most important resource being our faculty and people and their professional development," said ‘Iolani School spokes­woman Cathy Lee Chong.

At ‘Iolani, tuition will go up to $18,900 for all grade levels — a 6 percent, or $1,100, increase over the current school year.

"We try very hard to be sensitive to parents and the sacrifices they make to send their children to our school, and the board takes any changes in tuition very seriously," Chong said.

‘Iolani School has seen enrollment hold steady at about 1,880 students, she said.

At Punahou School, tuition will increase about 4 percent, to $19,950 for all grades.

"We tried to limit the increase to the bare minimum with rising health care and insurance costs as well as faculty and staff salaries," said John Field, vice president and treasurer at Punahou.

Field said tuition revenue covers only about 80 percent of the cost to educate students. The school’s endowment fund, fundraising efforts and donations help fill out the rest of the operating budget for Punahou’s 3,750 students.

"We appreciate the belief that our families have in Punahou School’s pledge to do our best to control tuition increases," he said. "At the same time, we are very committed to providing a broad and impressive program to all of our students."

Scott Siegfried, director of admissions for Mid-Pacific Institute, said the school’s 4 percent tuition increase will help fund learning programs and changes to curriculum.

"Technology is a big part of the learning experience. Last year we introduced a one-to-one iPad initiative for all grades, and that will continue this year," he said. "And, of course, it comes down to the cost of doing business and salary increases that we look to support for faculty and staff."

Tuition at the Manoa campus, with 1,550 students, will go up to $19,050.

Technology costs are also partly behind a 3 percent increase at La Pietra-Hawaii School for Girls, where tuition will go up to $17,600.

"Instead of having a separate technology fee, the tuition increase covers costs such as the iPads girls get for their personal use at the beginning of the school year," said La Pietra Head of School Mahina Hugo. "It also covers the cost of online courses. … And the increase will help with renovating our classrooms to accommodate the ways girls learn best and to enhance the use of technology."

Some schools need the extra income to help pay for facilities and campus projects.

Damien Memorial School will raise tuition 4.5 percent to $11,375 for high school students. President and CEO Bernard Ho said some of the funds will be used to continue renovating facilities at the formerly all-boys campus for coed use.

He added, "Fringe benefits for faculty and staff are a major expense, and health care premiums are a big piece."

Payroll and employee benefits also are cited as one of "the biggest drivers of tuition increases nationally," according to Myra McGovern, spokes­woman for the National Association of Independent Schools.

"Independent schools are a very people-intensive industry; having low student-teacher ratios is a great benefit for students, but it means that personnel costs form a larger portion of total expenses than in most other businesses," McGovern said.

"Affordable health care is a huge challenge for everyone right now, but especially for independent schools, which have a relatively small number of people to insure," usually resulting in higher rates per person.

Hawaii’s year-over-year increases are similar to the national average, but many of the state’s private schools are charging less than mainland schools, according to figures from the national association.

The median tuition across all grades for National Association of Independent Schools members was $20,612 this school year, up 4 percent from last year.

Despite tuition increases, schools here say re-enrollment and demand for new admissions have remained strong.

Several schools say they will continue to boost needs-based financial aid offerings for families. ‘Iolani, for example, will increase its financial aid budget almost 9 percent to $3.8 million. Punahou’s financial aid budget will go up 5.5 percent to a little more than $5 million.

Amid rising costs, some campuses have been aggressively pursuing ways to offset operating expenses.

"Tuition does not cover it all, so we try to control costs by getting into other things," said Sister Joan of Arc Souza, head of school for Saint Francis School, where tuition will increase to $10,000 for high school students.

Souza said the campus generates revenue from renting parking stalls to University of Hawaii-Manoa students and faculty, and leasing its swimming pool to a local swim club.

At Punahou, Field said the school has invested in solar photovoltaic systems and other energy-efficient technologies to help offset "significant" energy costs.