Cuts that might have to be offset by significant fee increases.
Director Narelle Blachford said the centre’s projected government funding would drop from $1.66 million this year to $1.21 million in 2027 under the new universal preschool program arrangements.
The bigger cut of $447,108 will be partially offset by expected transitional funding of $268,265, leaving the centre and its families to absorb the remaining cuts.
Ms Blachford said the heart of the problem was the NSW Government’s decision to base funding on average daily attendance rather than counting every enrolled eligible child.
She said that was a change that put larger preschools with multiple rooms and fluctuating attendance at a distinct disadvantage.
“The new funding model works on average daily attendance, so not every child counts. Which for every preschool in NSW is a big issue,” she said.
The centre also highlighted a major discrepancy in how the state calculated operational and staffing expenses.
The government funding tool estimates the centre’s workforce costs at $927,839. However, actual workforce expenditure had already reached $1.4m before the end of 2026.
Ms Blachford argued the model failed to account for necessary operational realities, including full-time administrative and leadership roles, staff breaks, training, leave entitlements and the higher ratio requirements for younger children.
Community-run preschools such as Moama’s also run longer daily sessions than those based on public school grounds, which directly pushes up staffing costs and wage obligations.
“As you can see, that figure of $927,000 is not enough,” she said.
NSW Member for Murray Helen Dalton indicated the NSW Department of Education appeared unprepared for the immediate pushback from providers, noting officials seemed shocked by the feedback received during a recent meeting with six community preschools.
She said the department had opened “Pandora’s box” and needed to better understand the implications for local services.
Ms Dalton said a petition calling for changes to the funding model could help bring the issue before parliament and prompt further debate.
The financial pressure now threatens what Moama Preschool has built over many years — a genuine commitment to making early education accessible and affordable for every local family.
Ms Blachford said making the issue worse was the timing of the announcement so late in the year.
“We are being told this in November when groups were already worked out,” she said.
“Our centre’s vision is every child in NSW and surrounds is entitled to affordable preschool in the two years before school and we have kept to this.”
A spokesperson for the NSW Department of Education said the Universal Preschool program ensures fairer, more consistent and sustainable funding, so families across NSW, including in regional areas, can access high quality, affordable early learning.
“Three and four-year-old children are fully funded for the first time and the new guidelines cap preschool program fees at their current rate or a maximum of $20 per day. The new guidelines also mandate above-award wages for the first time,” the spokesperson said.
“Any service which requires assistance with maximising their funding under the program is encouraged to contact the Department of Education.”
Services facing changed circumstances in 2027 may also be eligible for a funding review.
23°C