In January, the organisation was told it would lose its Work for the Dole placements, which make up the lion's share of its six-month budget.

The youth training organisation, based around a two-hectare gardening complex in Mitchell Street, Mornington, has been training at-risk young people for more than a decade.

MPYE manager Russell Ardley said the reduction in government funding came on top of a drought-related drop in plant sales and bulk seedling sales for local revegetation projects.

He has been forced to cut the hours of paid staff and rely more on the strong band of volunteers who help at the nursery.

"We have initiated a number of projects to earn more money," Mr Ardley said.

The group's latest venture is growing mangrove seedlings.

About 10,000 are under cultivation for Tim Ealey, a retired scientist and director of the Western Port Seagrass Partnership who has been planting mangroves along the Bass Coast shore of Western Port, helped by school children and community groups.

Known as 'Dr Mangrove', Dr Ealey is well known for his efforts to plant thousands of mangroves to stabilise eroding cliffs, restore water quality and allow seagrass to grow again.

He has been awarded an Order of Australia for services to conservation and the environment.

Mornington Peninsula Youth Enterprises provides courses including certificates of attainment in horticulture, first aid, occupational health and safety, use of chainsaws, ride-on mowers and other small equipment.

Other community groups, including the Mornington Community Garden, also use the site's facilities.

The complex includes an office, propagating room, hothouses, training room, woodwork and metalwork sheds and tea room.

Mr Ardley said the MPYE committee would hold a crisis meeting within two weeks to create new ways to keep the centre viable.