Private K-12 Schools
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 30,000 private K-12 schools in the US provide basic preparatory education for children in kindergarten through 12th grade. Elementary schools typically include grades kindergarten through six. Secondary schools typically include grade seven through twelve. Combined schools offer elementary and secondary education. The vast majority of K-12 private schools are non-profit organizations and about 66% of them are religion-based.
Dependence on Skilled Staff
Private school families expect high quality education from qualified, experienced teachers.
Competition from Alternative Education
In addition to standard public schools (which are free), private schools face competition from a variety of alternative sources, including charter schools, magnet schools, and home schooling.
Industry size & Structure
The average private K-12 school operates out of a single location, employs 10-26 workers and generates over $1 million in annual revenue.
- The private K-12 school industry consists of over 30,000 schools that educate over 4.7 million students and employ about 481,000 teachers, according to the National Center for Education Statistics Private School Universe Survey.
- Although tuition can vary significantly, average tuition is about $7,700 for elementary schools, $13,030 for secondary schools, and $13,640 for combined schools.
- The vast majority of K-12 private schools are nonprofit organizations.
- Most private schools are small institutions. About 21% of private schools have less than 150 students; 25% have between 150 and 299 students; 20% have between 300 and 499 students; and 34% have 500 students or more.
Industry Forecast
Private K-12 Schools Industry Growth
Recent Developments
Jul 16, 2024 - Moderate Revenue Growth Expected
- Private K-12 school revenue is forecast to grow at a 4.01% compounded annual rate from 2024 to 2028, comparable to the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Sources of revenue for private schools include tuition, private grants, donations, fundraisers, and income from endowments. Private K-12 school industry employment increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics.
- FutureEd has identified 118 private-school choice bills in 34 states that have been introduced or pre-filed so far in 2024. While most aim to broaden private-school choice options, a few seek to scale back such programs. Sixteen have been enacted as of June. Last year was a landmark year for private-school choice, with 17 states enacting legislation to either establish or expand programs. Eight of these states — Arkansas, Florida, Indiana, Iowa, North Carolina, Ohio, Oklahoma, and Utah—adopted universal or near - universal eligibility, bringing to ten the number of states with universal programs.
- Thirty-three states plus the District of Columbia and Puerto Rico currently offer 78 private school choice programs or policies. Policymakers are now moving beyond voucher programs, which only provide funds for private school tuition and fees, and are enacting Education Savings Account programs, where the educational dollars can be directed by parents to a variety of educational products, services, and providers to fully customize their child’s education, according to Patrick J. Wolf, Distinguished Professor of Education Policy at the University of Arkansas.
- The Mississippi Supreme Court has ruled that public education advocacy group Parents for Public Schools does not have legal standing to challenge the constitutionality of the state Legislature sending public money to private schools. The justices concluded that Parents for Public Schools does not have standing partly because harm to the public schools could not be proven. The opinion did not include a ruling on whether the $10 million appropriation made in 2022 by the Legislature to private schools was constitutional. Justice Robert Chamberlin wrote that the public education advocacy group says that the legislative appropriation “will adversely affect the funding of public schools by legislating a competitive advantage to the independent schools who will receive the funds. This alleged future harm, however, is speculative and not sufficient to meet even Mississippi’s permissive standing requirements.”
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