The Government provides $16 million annually for ACE programmes in New Zealand.
However, that figure would be cut by 80%, leaving schools to fight over $3.2 million which will be targeted at literacy, numeracy, te reo Maori and sign-language courses for adults.
Kaikorai Valley College principal Philip Craigie said the cut would mean most schools would not have enough funding to continue their ACE programmes.
"You could still run courses, but the adults would have to pay all of the fees. They won't be subsidised any more."
Mr Craigie said adult students paid about $50 a term for ACE courses.
However, without the Government's funding, they would be expected to pay more than $100 a term for each course.
Over a four-term year, it could cost students between $400 and $500, making it too expensive for many adults.
Schools were not in a position to subsidise the programmes, he said.
"It's not financially viable. Schools are already financially strained and they can't afford to pay for it."
The cuts meant up to 2500 adults would no longer have subsidised access to courses, and hundreds of course tutors around the region would be laid off, he said.
"I think it's particularly sad. It's been a tradition in this country for people to do adult courses. I did an adult course in computers a couple of years ago.
"There are not only learning benefits from these courses, there are health benefits as well. People get out and socialise and make new friends. It gives people confidence and new skills which may transfer into a person's ability to find a new job."
Many of the 15 schools in the Otago region offering ACE programmes were investigating ways of continuing the courses.
However, all but three schools said it was likely they would have to abandon the programme.
Logan Park High School, Wakatipu High School and Mt Aspiring College said they were optimistic they could continue their courses, albeit in a reduced capacity.
"We are determined to retain some form of ACE," Mt Aspiring principal Wayne Bosley said.
"We haven't worked out how it will be funded or what shape it will take yet . . . But we're a community school and we believe in educating the whole community."
