Changes to state government funding was a key factor in the tough decision to close a Thornton preschool, which faced a projected 70 per cent loss of income in 2016.
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KU Maitland Mobile Preschool will close at the end of this year after its parent company, Sydney-based KU Children’s Services, told families last week that it could not continue subsidising the venture.
CEO Christine Legg told the Mercury that several factors were behind the difficult decision.
She said changes to the classification of Thornton, which meant it was no longer seen as a rural/remote area for funding purposes, combined with changes to the government’s preschool funding model, meant KU Maitland Mobile faced a 70 per cent loss of income next year.
Ms Legg said the government’s decision to only subsidise the preschool fees of four-year-olds had led to a drop in enrolments recently, because the not-for-profit company had to increase fees for children of other ages.
She said NSW preschools received the lowest amount of government funding, per child, of any state in Australia and many operations were struggling to get by.
“We were hoping that with the surplus the government recorded that some of that money would be thrown towards helping preschools,” she said.
“Thirty three per cent of our income is government funding and parents pay the rest – that’s huge. We’ve operated at a deficit for some time. We are a not-for-profit, we can’t afford to continue operating at a deficit.”
Maitland MP Jenny Aitchison said preschool funding was “a very serious issue” and she planned to raise the matter in Parliament.
“I am curious as to why the government has decided that this area no longer meets rural/remote funding eligibility, when it is clear we haven’t moved anywhere,” she said.
“It just sounds like the government is reducing its definitions in order to make cuts by stealth.
“The recent Dropping Off The Edge report identified the 2322 postcode as a very disadvantaged area and so it is appalling to see the government leaving our children without this vital start to education.
“Engaging children in education early provides better outcomes and, as poor education is one of the key factors in disadvantage, I can’t understand why the government would attack funding for a service which would have helped this community.”