Northants county council is looking at the Delta Project in Tiffield, near Towcester, which helps youngsters in residential or foster care.
Many have missed out on education and teacher Lyn Gamble said the centre provides help no-one else can offer.
The county council said it is reviewing all its operations.
'Lost school time'
She said: "I can't emphasise enough how special these children are.
"They're in mental pain from being rejected and neglected. Many have lost all belief in their ability to cope with school.
"They've lost so much time from school they do not think they can catch up."
The council is facing a £9.5m budget shortfall for 2006/07 and has said it will report on cuts in jobs and services in February.
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