SEVEN rural-based childcare centres on both sides of the border will shut their doors this month after a funding formula switch made them unprofitable to run for operators, Albury-Wodonga Community College.
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Staff and families were notified on Friday of the decision to close the community early years centres at Mitta, Walwa, Kergunyah, Baranduda and Bellbridge in Victoria and Henty and Walla in NSW.
Three other centres at Chiltern, Kiewa and South Street, Wodonga will remain open subject to an immediate in-house cost analysis to run.
The closures translate to 20 to 25 job losses and parents of about 60 children requiring alternative arrangements next year.
The centres staying open support around 160 children
AWCC has been providing the service for 30 years, but the July 1 transition to a new childcare subsidy funding model system from a budget-based funding in addition to anticipated lower attendance at some venues has further applied the financial squeeze.
Chairman Kevin Poulton said it had underwritten average annual losses of $30,000 for eight years, but in five months the losses have increased tenfold.
“No director wishes us to be in this position,” he said.
“But the accumulated losses are well beyond our capacity to sustain and it is our view there is little likelihood of any significant government policy change that would rectify the present monthly losses or repay the significant funds AWCC has used to support (community early years centres) service locations.
“We didn’t decide the funding policy but we do now decide that the many factors at play, including lower attendances, we must rationalise and unfortunately that means closures.
“We apologise for the inconvenience this decision causes but we will continue to advocate for better rural childcare opportunities.”
Greater Hume Shire general manager Steve Pinnuck said the council was also notified of the Henty and Walla closures and their impacts were still to be fully assessed.
The Henty centre had 41 enrolments between the ages of two and five years.