As school vouchers become available to all Iowa families, parents at a large private school operator in Dubuque are experiencing tuition sticker shock.
Administrators of Holy Family Catholic Schools met with parents this week over concerns about a tuition hike coming in the next school year. Every student from elementary to high school will have the same $11,100 tuition, starting in the 2025-2026 academic year.
The school district says the “universal” tuition rates eliminate the price jumps families experience as their children matriculate from elementary to middle school and from middle school to high school. District officials say tuition increases will therefore be more predictable based on cost-of-living adjustments.
Holy Family’s chief administrator Phillip Bormann told KCRG that the increase was about paying teachers better; the district is raising the minimum teacher’s salary to $50,000. But during the meeting Wednesday, one parent asked how much of the 58% tuition hike would go to teacher salaries. The administrator told the crowd he couldn’t answer that question.
The change is a big one for Holy Family. According to an email obtained by Iowa Starting Line detailing the change, the district says the increase reflects the actual cost to educate students and puts new money from school vouchers “to work for their intended use.”
While the district says the universal tuition rate is about transparency, the final out-of-pocket cost is complicated. Depending on the student, a family could have access to parish-support, scholarship, and other local assistance. They will also have access to taxpayer-funded vouchers of $7,800 per child from the state. According to some scenarios provided to parents, the vouchers will help cover the lion’s share of the increase, leading some Iowa families to pay nothing or between $1,500 and $2,500 out of pocket.
Dubuque sits at a tri-state border, meaning the school has enrolled students from Illinois and Wisconsin. These out-of-state students will see the largest increase, paying as much as $6,800 more.
Holy Family’s move follows that of several other private schools that raised their tuition after Gov. Kim Reynolds signed the state’s new voucher program into law in 2023.
A study found that kindergarten tuition at Iowa private schools shot up between 21% and 24% since the voucher program began.
“To the extent tuition levels outpace the ESA payment, families unable to further contribute to tuition may be priced out of schools, thus defeating the program’s stated goal,” the study said. “If this is the case, ESAs act as tuition subsidies for families who can already afford private school.”
Iowa voucher program shoots past cost estimates
Since it was signed into law, the cost of Reynolds’ private school voucher program has consistently blown past estimates.
In year one of private school vouchers, the state’s Legislative Services Agency estimated it would cost $106.9 million. However, the program ended up needing $128 million before the end of the 2023-2024 school year—weighing in at 20% over budget.
In year two, that same estimate had this school year’s voucher program (2024-2025) costing the state $132.3 million. But at the governor’s recommendation, the Iowa Legislature raised its allocation to $179.2 million—a figure that puts the program at a staggering 35% over budget.
The state has declined to release data on the number of students using private school vouchers. It is expected to release this information in January.
But we do know the cost will be large, easily eclipsing the $179.2 million the legislature agreed to.
