But a council manager says the reallocation of the funding to other initiatives will reach more people in the district, and moves to reduce waste through education will step up.
Central Otago Reap manager Bernie Lepper said the loss of $54,600 of funding would mean the sustainable living programme would end in August.
One part-time worker for the programme would lose their job at Reap - which had been contracted to run the programme since 2006 - because of the funding cut, Mrs Lepper said.
Another part-time worker for the programme would remain at Reap, picking up extra hours for an enviroschools facilitator role because of extra funding being given to that area.
Mrs Lepper said the Thyme Festival was a "highlight" of the sustainable living programme and it was unlikely it would continue. The sustainable living co-ordinators had played a major role in organising the festival, helped by volunteers.
She was upset about the loss of funding, particularly because the decision was made during a public-excluded session at a council meeting, and there was no consultation.
She also said the funding cut did not make sense when the council said it realised the importance of sustainability and education about things such as waste minimisation.
However, it was important to note the Reap programme had included broader topics such as biodiversity, water, air, housing and food, Mrs Lepper said.
She said the programme had been the catalyst for specific initiatives and general social change, including the creation of the MAD4CO (Making a Difference for Central Otago) group and the meeting that led to the formation of the Central Otago Wilding Conifer Control Group.
However, council executive manager infrastructure services Julie Muir said the council believed it was better to shift to a "targeted educational approach".
The sustainable living programme was funded from a waste levy, but did not meet the requirement for funding from the levy, Ms Muir said.
Reallocation of the funding would allow educational initiatives to be increased and greater emphasis on recycling, reusing and reducing waste, she said.
The council would also put $17,000 of the sustainable living funding into the enviroschools programme, supporting the four Central Otago schools who were not in the programme to join it.
