CHILDCARE workers are sceptical of the state government's investment in preschools, warning regional areas could be among the hardest hit.
NSW lobby group the Community Child Care Co-operative is concerned about the urban-regional divide in preschool services.
Chief executive Leanne Gibbs said regional preschools were funded by parents' fees, government subsidies, local business and any fundraising conducted by the supporting committee.
"Any reduction in government expenditure obviously impacts on the amount of services regional preschools can provide," she said.
In last year's state budget early childhood services received $361.1 million, but actual expenditure was $262.9 million.
The recent state budget set aside $347.8 million for early childhood education services, which includes the government's election commitment of $20m for before and after-school care.
Mrs Gibbs was concerned the money not spent from last year's allocation had not been used to boost this year's budget.
"Although the money in this year's budget is similar to last year's allocation, it remains to be seen whether they spend it or not."
Demand for preschool places depends on the population demographics, according to Mrs Gibbs.
"Obviously, in towns with an ageing population, demand is low, but in regional centres it is definitely increasing with more children requiring preschool places."
A spokesman for the Early Childhood Education Minister Leslie Williams said the disparity between the budgeted and revised expenditure for 2014-15 was due to the timing and variations of Commonwealth National Partner- ship funding paid to the state.
"This did not affect payments to services," the spokesman pointed out.
"NSW focuses its funding primarily on early education in community preschools.
"Since the introduction of the Preschool Funding Model in January 2014, funding for community preschools increased 20 per cent."
The spokesman said the government's preschool model provided for students in rural and remote communities through funding loadings, which recognised the additional cost of delivering preschool services in these places.
"An ongoing, sustainable funding agreement with the Commonwealth for early childhood education is vital to ensure that cost is not a barrier to access, especially for the children who stand to benefit the most," he said.
Mrs Gibbs said preschool education was vitally important and two years there set children up for life.
"It has a very important place, and is just as important for children in isolated areas," she said.
"The most important thing is that every child has the opportunity to engage in a preschool program.
"Every child should be able to have social interaction at a young age."
Strains on services at Coolah
COOLAH Preschool Kindergarten, which has 50 preschool-aged children enrolled, lost funding under NSW's regulation reform which took effect in 2014.
Coolah Preschool Kindergarten president Kathy Rindfleish said the preschool was a significant asset to the community, as it was the only early childhood centre within a 50 kilometre radius.
Mrs Rindfleish (pictured) said the National Quality Standard, introduced for all early childhood services in 2014, increased accountability across the sector but also created financial difficulties.
"Under the new funding arrangements we stand to lose $16,000 in funding and this has significant implications for our funding and viability of the preschool."
"As per the new funding model the preschool does not receive any funding for children under three."
Mrs Rindfleish said Coolah preschool parents and community were expected to contribute about $15,000 to maintain their budget.
"Our committee, staff and parents do many activities for our fundraising, from having garden parties, catering for touch footy weekends, weddings, golf days or any catering jobs that we can get," she said.
"We have increased our fees this year to come within our budget but it is not possible for us to increase them any more to make up the shortfall.
"It will make it unaffordable for country children to attend preschool."