The New South Wales Government will reveal a budget surplus of $3.9 billion for this financial year, despite spending up big on families.
The $3.9 billion figure will drop to an average of $1.6 billion over the forward estimates, due to a projected drop in revenue from stamp duty.
In the meantime, it is flush with cash, the lion's share going to families.
In a $200 million giveaway, NSW will become the first state to pay for three-year-olds to go to preschool.
Currently only four-years-olds are subsidised for preschool.
The preschool funding is the latest in a flurry of packages announced that are aimed at families.
These include air-conditioned schools, money to support new parents and baby hampers upon the birth of their child, a reduction in the monetary value of parking fines and 12 new schools to be built across the state.
There are some pre-schools that are wholly funded by the Government, however many pre-schools are not-for-profit.
Early childhood educators say evidence shows it is vital for children to attend preschool, to prepare them for kindergarten.
In 2016 the Government boosted funding to preschools by $115 million after a report by the Auditor-General found NSW pre-schools were the least attended and most costly in the nation.
NSW early childhood funding was also lower than any other state, the Auditor-General found.
The 2016 boost was backed with another $15 million in February this year.
At the time Premier Gladys Berejiklian said the Government needed to do "everything we can to ensure children attending pre-schools have the most modern and stimulating learning environments".
