Child and Family Services (CAFS) may have to cut its program due to an annual $300,000 underfunding crisis.

CAFS chief executive officer Allan Joy said on Wednesday the program, in which carers look after foster children in share homes, may have to shut to allow other CAFS programs to continue.

He said CAFS relied on donations and fundraising to bridge the $300,000 gap in government funding for the residential service.

"With figures also showing the number of children from Ballarat placed in out of home care rose by over 14 per cent since 2008, and family stress increasing by 48 per cent since 2009, we should aim to make it easier for families to get support that keeps kids with parents when possible," Mr Joy said.

"When that's not possible, the state government must invest in programs that keeps kids safe, their views respected and ensure they're well cared for.

"While the number of children in care have gone up, it is a fact that Victorian carers are reimbursed at the lowest rate in Australia. They are around $90 per week, or $4700-a-year, worse off than carers interstate.

"That's unjust and must be fixed. There is no doubt this makes it difficult to attract and retain carers."

Mr Joy was joined by Centre for Excellence in Child and Family Welfare (CFECFW) chief executive officer Deb Tsorbaris in launching the CFECFW 2014 election statement.

Ms Tsorbaris said Victorian child neglect cases had consistently risen over the past four years.

"We need a more ambitious vision from our politicians. Children in care should be no worse off educationally or socially than any other Victorian child, and more must be done to achieve this," she said.

"Our election statement is a blueprint for the incoming state government on the best ways of tackling disadvantage in Victoria. Much more can, and needs, to be done. We know that acting early when families hit tough times works.

"With the right sense of urgency, the incoming state government can give every child a happy start to life. Investing early and properly into our great services will make a real difference."

Foster carer Julie Wilding said her sister in New South Wales, also a foster carer, received much more government funding.

"Our kids don't get what New South Wales get," Ms Wilding said.

"We love our kids and give them what they need but there needs to be more funding."

fiona.henderson@fairfaxmedia.com.au