Cooma Lambie Street Preschool staff dressed up in red on Thursday for a 'red day of action' to highlight the lack of funding for early education in NSW by the state government.
They joined other early education and care services across NSW to protest against the NSW government's lack of investment in early childhood education and proposed changes to funding of community based preschools and long-day-care services.
Lambie Street Preschool director Cathy Toohey said children, staff and parents at the pre school wore red clothing to show how fired up they are about the lack of funding from the O'Farrell government.
The red day of action at childhood services across the state was accompanied by a rally and protest at Parliament House in Sydney.
"It is just not good enough that the NSW government spends less on early education per child than any other state or territory," Mrs Toohey said.
"We need greater investment in our children by the NSW government.
"We know that children that participate in early education do better in school and in later life, but the NSW government has not increased funding despite this being the first recommendation of a review they commissioned into funding for early childhood education."
The government is also proposing changing how not-for-profit preschools and long day care services are funded, a move Cooma Lambie Street Preschool says will be bad for Cooma and surrounding districts.
"The government has proposed removing funding for three-year-old children attending preschools," Mrs Toohey said.
"This means that Cooma Lambie Street Preschool will be forced to charge higher fees for three-year-old children.
"They have also suggested that some preschools will receive less funding.
"If this occurs to our fees will have to increase for all ages."
One-third of the state's community-based preschools face closure under a new funding model for early childhood education which strips funding for three-year-olds to focus greater resources on four- and five-year-olds.
The model, to take effect next year, could also force fee rises of more than $15 a day in more than 50 per cent of centres, according to research by the Community Child Care Co-operative (NSW).
A report produced last week by the Melbourne Graduate School of Education stated that "to realise the potential of all students, children need access to high quality early learning programs from before they turn three until school entry."
The NSW government has over a number of years spent less on early education and care than any other state and territory in Australia.
This has meant higher preschool fees, and subsequently lower participation in early education than any other state or territory.