In a worst case scenario, Roxburgh's health camp would remain open until at least June 2010.
The camp, which is owned along with six others by Te Puna Whaiora Children's Health Camps, was threatened with closure last year due to a reported $5 million funding shortfall.
But Te Puna Whaiora board chairman Wayne Chapman yesterday told the Otago Daily Times he felt much more relaxed about the situation than in October, when Roxburgh Health Camp staff feared for their jobs.
Mr Chapman said a funding shortfall for New Zealand's seven camps was no longer an immediate concern, and would more likely be felt in three or four years, if at all.
"Our current funding contract expires on June 31, 2010; so until then things should remain as normal. We are requesting an increase in funding for our next contract, which would secure our assets into the future," he said.
Mr Chapman said the closure of Roxburgh's camp, or any camps, was unlikely, despite economic strain.
"The Government has said they are looking at all funding contracts and applications on a line-by-line basis, and at the end of the day ours is a very large contract, and if they think they can screw us down or make savings they will.
"Having said that, even if we didn't get an increase in funding from 2010 onwards, it would not necessarily mean the closure of camps.
The Ministry of Social Development has made it very plain that closure of a camp or camps anywhere won't happen without full consultation, and they don't want it to happen," he said.
Mr Chapman said as with any other business, the camp was open to alternative funding.