Muswellbrook Preschool says it could close by 2028 if the State Government does not address a funding shortfall of almost $469,000, as community preschools across the state prepare to rally this week.
Preschool representative Raelee Smith said two years of negotiating a multi-employer agreement at the Fair Work Commission, aimed at securing fair wages for early childhood teachers and educators, had resulted in a new funding model that has left hundreds of preschools with deficits of up to and over $400,000. She said it also left no ability to address wages to attract and retain staff.
“Unfortunately, the fight for fairer wages has turned into a fight for survival of our community-based preschools across the state,” Ms Smith said.
Transitional funding will bridge part of the gap in 2027, reducing Muswellbrook Preschool’s deficit to almost $190,000, but it ends in 2028. Ms Smith said some preschools were about $50,000 out of pocket, while a large number were over $100,000. She said Muswellbrook’s figure was higher because it is a larger service, with five classrooms, about 100 children a day and 200 across a week. She said smaller preschools, such as the one-classroom, three-day service at Murrurundi, would experience a different deficit.
She said the preschools are not-for-profit and are required not to hold large cash reserves, with any funds set aside for staff leave provisions. She said fees had also been capped, so the only other source of income was no longer an option.
Ms Smith said community preschool staff were at least 15 per cent behind colleagues in long day care and 30 per cent behind teachers in public preschools, despite having the same qualifications and teacher registration requirements. She said the State Government’s plan to build another 100 public preschools was welcome, but would not replace the 740 community preschools in NSW, many of which are the only early childhood service in their town.
“It defies logic that you would build 100 preschools and then put 740 other preschools at risk,” she said.
“It’s very simple math that you cannot spend money you do not have.”
Asked whether the preschool could close, Ms Smith said there was a chance. Muswellbrook Preschool has operated in the town for 61 years.
The Independent Education Union will hold a rally outside Labor MP Clayton Barr’s Cessnock office his morning, with preschools from the Upper and Lower Hunter expected to attend.
Ms Smith said the message to Mr Barr was to speak with Education Minister Prue Car, Premier Chris Minns and the Treasurer, because urgent action was needed to plan for 2027. A meeting with union ambassadors is also planned.
Another rally will be held outside the Education Minister’s Sydney office on Friday.
