It comes after a bid for state government support was denied.

The council staged a special meeting this week, during which it resolved to apply for $800,000 from the federal drought communities program.

Half a million dollars would be for an early years centre in Wycheproof.

The other $300,000 would go towards upgrades to the Birchip Community Leisure Centre precinct.

Eligible councils can apply for up to $1m.

Buloke Shire Council chief executive Anthony Judd said an early years centre for Wycheproof was a "massive" priority for the shire.

It had previously sought $1.48 million from the state government for the project, which would be a hub for kindergarten, childcare and maternal and child health services.

Those championing the early years centre would like it built on the same site as the Wycheproof P-12 School.

Buloke Shire Council is still seeking funding from the state for the project.

At its special meeting, the shire resolved to work with the state government to secure $500,000 from the Children's Facilities Capital Program.

A report to councillors, presented ahead of December's ordinary meeting, said the state government had advised council to consider applying for a smaller sum.

The government also suggested the cost and scope of the project be reduced, and the council consider the ability to co-contribute.

Shire staff were subsequently working to "re-scope" the project, shaving the total cost down by almost $500,000.

The council was considering its capital budget, as well as working with the community about its ability to contribute.

"We're encouraged they're having open discussions with us," Mr Judd said.

He said all three levels of government would have to work together to deliver the project.

The Victorian government this week announced funding to build and upgrade a number of early learning facilities.

It expected to invest more than $1.6 billion in building and expanding kindergartens over the next decade.

Meanwhile, the government would roll out funded three-year-old kinder.

Buloke will be one of the first six local government areas to receive the program, which starts in the new year.

Funded three-year-old kinder extends to Campaspe, Central Goldfields and Loddon shires in 2021 and to the rest of the state from 2022.

Mr Judd said in November the shire had concerns about the location and building in which existing pre-school services were provided in Wycheproof.

"The current site is not at all suitable in the medium to long term and the benefits of co-location with P-12 schools are well documented," he said after the council's funding application was denied.

The chief executive officer said it was beyond the council's capacity to fully fund the project.

"As with many of council's large assets, they suffer from our small rural council rate base and ability to go above and beyond with budget spends," Mr Judd said.

He said kindergartens in other Buloke towns had initially been unsuccessful in securing funding.

"We will continue to advocate for this funding. There is no excuse for rural children to receive a lowered experience in early childhood simply due to location," Mr Judd said.

"Our school readiness statistics are not good enough and providing quality opportunities in early childhood is critical to addressing this."