NSW preschool community organises protest rally as funding cut reality kicks in

Yesterday, a large group of educators, teachers and community supporters participated in a rally of protest outside the office of Labor MP Janelle Saffin to signal their ongoing concerns, fears and frustrations at the sweeping funding cuts announced by the New South Wales Government in August. 

Organised by the Independent Education Union of Australia NSW/ACT Branch, the protest is the most recent expression of community concern about the sweeping reforms that will see not only community pre-schools materially impacted but long day care centres, both for profit and not profit, see material falls in program focused funding payments. 

“Many preschools anticipate losing hundreds of thousands of dollars under the new program,” IEU NSW/ACT Branch Secretary Carol Matthews said because funding guidelines are based on complex enrolment requirements, yet preschools have already settled enrolments for next year. 

“Any decrease in funding may lead to pay freezes and job losses for teachers and educators amid rising unemployment and a cost-of-living crisis.”

Funding cuts for community preschool space substantial and material 

The new funding program will see a shift in how funding is allocated to pre-schools with a new methodology, akin to public preschools, whereby funding is determined based on enrolments and the expected costs, including staff numbers, that the number of children enrolled is understood to need. 

The shift in methodology is likely to disproportionately impact community pre-schools that have historically rostered above ratio to ensure high quality delivery and often includes a centre manager in ratio as a third ratio to facilitate this. 

In addition, community preschool teachers are paid less than teachers in schools, government preschools and long day care centres with an experienced teacher in a community preschool being paid up to $30,000 a year less than a teacher in a government preschool or primary school.

“These cuts not only affect staff and families but entire communities – almost 50,000 children are enrolled in about 700 community preschools across NSW. Our hardworking members in preschools are understandably anxious.”

Cuts to inclusion and LDC program funding also alarming 

The broad based funding reset in NSW has not only impacted community preschools across the state but long day care too which will see $150 million in program funding cut, despite all other Australian jurisdictions continuing with program funding pathways, and substantial changes in inclusion support funding too. 

Specifically, in the inclusion support space the new guidelines introduce a two tiered classification system based on the degree of support provided to a child which will in turn see funding per hour parameters change align with the new tiers. 

Instead of one universal funding rate which currently applies to all children and is equivalent to $27.57 per hour, Tier 2 which allows for “frequent individual support” will attract just $9.63 per hour, equivalent to around $7,200 a year instead of $16,500 a year, whereas Tier 3 which allows for “substantial and constant individual support” will qualify for slightly higher rate of $28.88 per hour. 

As implementation dates approach the broader ECEC community in NSW will continue to process and position for what is likely to be a challenging year for many services, across different settings, as they adjust their operating practices to account for the Government changes. 

To read the NSW 2027 Universal Funding Guidelines click here and Inclusion Support Guidelines here.