The Dunedin Kindergarten Association is putting building projects on hold, as government funding to the organisation is expected to drop by $1.2 million next year.
In the May Budget, the Government announced the early childhood education sector would save $280 million over four years through a reduced financial incentive for centres to have 100% qualified staff.
The previous government had encouraged ECE providers to have all staff in their centres qualified and they had received subsidies for them. But from February 2011, only 80% of a centre's staff will receive funding.
Dunedin Kindergarten Association manager Christine Gale said the association was in the process of rebuilding three of its 22 centres in Dunedin and had several more rebuilds planned for the future.
Advance financial planning and funding meant the rebuilding of Port Chalmers Kindergarten, Jonathan Rhodes Kindergarten (Northeast Valley) and Green Island Kindergarten would go ahead and be completed next year.
However, the expected loss of $1.2 million from next year's budget meant the association would have to postpone any future building projects.
Ms Gale said the funding cut was disappointing.
The rebuilding of Port Chalmers, Jonathan Rhodes and Green Island kindergartens were the first in about 30 years for the association, and many of its other buildings were in need of updating, she said.
"The buildings are getting very old. Some are 80 to 90 years old.
"They're lovely old buildings, but they're becoming difficult to maintain.
"It could be some years before any new ones are built.
"Having the extra funding over the last few years means we've been able to maximise the educational opportunities for communities around Dunedin.
"But the reduced bulk funding will impact on families as we look to increase our income and decrease our spending."
Ms Gale said that meant there would be an increase of up to $80 per week for some of the association's families in Dunedin.
A survey of 435 early childhood education providers around New Zealand, conducted by the Labour Party, revealed 94% of them would lose funding next year.
In Otago, providers would lose, on average, about $48,500, the survey showed.
