The non-profit preschools will lobby governments for more funds amid fears many children are starting school without any preschool education.

Lack of funding has also caused several preschools in the area to shut.

Preschools in St George and the shire now charge $30-$45 a day. Parents who choose to send their child to a preschool instead of a long day care centre are not eligible for the Federal Government's 50 percent childcare rebate, while those eligible for a childcare benefit can only claim a much-reduced rate.

This has led some parents to abandon community-run preschools in favour of long day care centres.

Jacaranda Preschool Centre director Louise Murfat co-ordinates a network of shire community-based preschools.

She said the shire's 18 non-profit preschools struggled to stay afloat, despite funding increases over the past few years.

While the extra funds had allowed some preschools to decrease their fees by a few dollars a day or hold off further rises, a preschool education was still out of reach for many low-income families.

She said a household with a combined income of $40,000 only received a $9 fee reduction at her centre, leaving parents about $29 a day out of pocket. This meant many families struggled to meet the Federal Government's recent recommendation of a minimum 15 hours of preschool a week prior to starting school.

Ms Murfat said there was a push for NSW to take the lead of other Australian states and territories and fund preschools out of the Department of Education and Training (DEET) budget. Only one DEET-funded preschool operates in St George; there are none in the shire.

Siobhan Beavis, co-ordinator of Arndu St Paul's Preschool, Oatley, said a recent increase in funding was welcomed by the 13 community-based preschools in St George, few could afford to reduce fees.

"[The funding] really only offsets costs,'' she said. "We are doing maintenance and renovations that we have not been able to do.''

They called for the childcare rebate to be extended to preschools.

Do you think preschools need more funding?