A proposal to provide up to $500,000 in scholarships to needy Hawaiian students attending private schools in Hawai'i has won preliminary approval from the Office of Hawaiian Affairs trustees.

OHA would give up to $5,000 per student in kindergarten through grade 12 in a school that is a member of the Hawai'i Association of Independent Schools. The program would exclude Kamehameha Schools, which provides aid to its students.

Priority would be given to those from families coming from the low and "gap" income categories. Scholarships would be capped at no more than half of a student's tuition cost. The proposal was approved last week.

OHA trustee Oswald Stender cited studies showing that more than 60,000 students in the public school system have Hawaiian blood.

"They represent 40 percent of the public school population and yet (Hawaiians as a whole are) only 20 percent of the population," Stender said. "Where do the other kids go? They go to private schools. Hawaiians cannot afford the tuition."

Kamehameha, established by Princess Bernice Pauahi Bishop with admissions preference to Hawaiians, turns down nine out of 10 applicants because of space limitations, said Stender, a former trustee there.

"We should help those families and those kids that can qualify to go to Punahou or 'Iolani, or even a special needs school," said Stender, who has also been a trustee at 'Iolani School, St. Andrew's Priory and other private schools.

A joint hearing of OHA's committees on asset and resource management and beneficiary advocacy and empowerment approved the proposal on Wednesday. Because the two committees comprise all nine OHA trustees, the entire board is expected to approve the plan at its meeting on Oct. 5.

Some board members expressed reservations.

Trustee Linda Dela Cruz was the lone "no" vote and said she would oppose such funding until OHA gave an equal amount of money to the Department of Education. "We're always giving funds to select students," she said. "It's time that we get our schools off the welfare rolls."

Trustee Dante Carpenter, however, pointed out that OHA provides $2.2 million annually to the DOE's Hawaiian-focused charter schools.

Trustee Colette Machado abstained from the vote, stating she was uncomfortable that Kamehameha was being excluded from the proposal.

But Kamehameha spokeswoman Ann Botticelli, reached by The Advertiser later, said officials of the schools have no problem with the proposal.

"Kamehameha Schools already provides financial aid to the fullest extent needed for students on our campuses," she said, noting that 40 percent of its students receive full or partial financial aid. "This OHA fund helps families with children at other private schools, and we think that's terrific."

Stender said the heads of 'Iolani and Punahou schools endorsed the proposal when he ran it by them.

Keola Nakanishi, principal of Halau Ku Mana New Century Public Charter School, one of the 14 Hawaiian-focused charter schools under the DOE umbrella, said he also supports the plan.

Nakanishi said the extra help should ease the waiting lists for the Hawaiian charter schools, which comprises about 93 percent Hawaiian students. Applications always outnumber the number of openings at Halau Ku Mana, he said, and the situation is the same at its sister Hawaiian charter schools.

"If OHA can continue to support charter schools and provide this opportunity (that) is great," Nakanishi said.

The proposal is a one-year pilot project with trustees having the option to renew it for three years after an evaluation.

Stender said he hopes funding will increase in the future.

OHA, in recent years, has provided $250,000 annually for a scholarship program for undergraduate and graduate college students of Hawaiian descent.

More than 100 students receive about $2,000 annually, according to Reshela DuPuis, OHA's acting director of education.

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com.