Community preschools are warning they may be forced to offload educators, or reduce the quality of their services, due to changes to state funding arrangements.
“Not only are we at risk of losing staff, we're at risk of not being able to provide children the same quality of education and care,” Toormina Community Preschool director Kerrie Stichbury told the Mid North Coaster.
The new model: The state government has introduced new Universal Preschool Funding, which takes effect from January 1, 2027.
Under the model, community preschools will be asked to maximise places in their centres, with an aim to cater for more than 10,000 additional children across NSW.
Preschool places for three-year-olds will be fully funded for the first time, and funding for children with additional support needs will increase.
Centres will be incentivised to offer a third day of childcare to children from “priority cohorts”. This includes Aboriginal and Torres Strait Islander children, children with disability, and those from low-income families or remote areas.
Educators will also be guaranteed higher-than-award pay rates.
More care for more kids: Early learning minister Prue Car said the program aims to “support more children having access to community preschools”.
Essentially, if services are willing to take on more enrolments, they will receive more funding.
However, they will only be funded to meet minimum ratio standards of one educator for 10 children.
So, what’s the problem: Stichbury said the new model penalises community preschools that operate above minimum staff ratios.
Her centre, which has been open for 50 years, employs 12 staff and provides care to 78 children throughout the week.
She rosters staff above the minimum ratio whenever possible.
“We know that's what keeps children safe,” she said. “When you've got one set of eyes on 10 children, that's when things can go wrong.”
Funding pains: Preschools will learn their exact funding allocations later this month. Based on a government funding calculator, Stichbury claims her centre will be $155,000 worse off annually from 2028.
What it means: Stichbury said the new model may mean job cuts in the future. Despite a waitlist of more than 60 children, her centre does not have the capacity to take more enrolments.
“We possibly can operate at a loss for next year and not put anyone's job at risk. But we can't sustain that into the future.”
Can they raise prices?: Toormina Community Preschool charges $15 a day for children who are not eligible for funding assistance.
Under the new model, out-of-pocket fees are capped at $20 per day.
Stichbury said a $5 increase in prices would not be sufficient to cover the funding shortfall, and would be “morally wrong” in such tight economic times.