The Work'n It Out programme works with 15 to 19-year-old school leavers to ensure they do not slip through the system.
The programme is a collaboration between government agencies, local government, industry and communities, and has been successful in getting youth into work, apprenticeships or further studies, by providing one-on-one mentors, careers advisers, support with job search skills and support to look at training options.
Its success has resulted in the programme being held up as a possible model for the rest of the country.
However, it is believed the Government plans to cease funding the programme, and instead fund a new programme for 16 and 17-year-olds.
The proposal has left Dunedin Mayor Dave Cull, Clutha Mayor Bryan Cadogan, Central Otago Mayor Tony Lepper, Gore Mayor Tracy Hicks, Southland Mayor Frana Cardno and Invercargill Mayor Tim Shadbolt dismayed.
Mr Cadogan said at a time when youth unemployment was at record highs, it was untenable that central government was contemplating a withdrawal of support for 18 and 19-year-olds, and only focusing on 16 and 17-year-olds.
"Presently, Work'n It Out is doing a brilliant job at the top of the cliff, assisting so many good young kids into positive employment outcomes. And they are doing this at a time when, within our region, we have the highest rate of youth unemployment per capita in New Zealand.
"To narrow our sphere of influence down to just dealing with identified at-risk 16 and 17-year-olds, instead of the present situation where they contact everyone 19 and under, hugely diminishes their effectiveness.
"Right now, our young ones need and deserve better, and I hope the policy can be changed to leave Work'n It Out operating as they presently do in the lower South Island.
"Failure to do this will be an ongoing tragedy for our region."
During the 2010-11 financial year, 933 young people received one-on-one support through the programme.
Of those, 77% achieved either employment, further education or training.
About 52% of the youth using the programme were aged 18 and 19.
Mr Cull said Dunedin had an "extremely high" youth unemployment rate, and it was imperative the programme remained.
"It should not be either 15 to 17-year-olds, or 18 to 24-year-olds. We need both."
Mr Hicks has written to Clutha-Southland MP Bill English about the mayors' concerns.
"It would be a real shame to see all the good work of the past overlooked to have a one-size-fits-all option replace it, as well as somewhat ironic that the rollout would result in redundancy within the service," he said.
