New figures released in Parliament show that last year the YJB allocated £115m to youth offending teams (YOTs).
This compares with £117m in 2007/08 and represents the first cut in funding since 2000 - the earliest point figures are available for.
The cut coincides with lower levels of reoffending nationally.
Latest rates for children and young people, published last month, show reoffending has fallen by 7.5 per cent in the past two years.
Separate figures released last month show the YJB has seen funding for programmes to prevent offending in the first place cut by £2m.
A total of £36m was handed to the YJB for these programmes in 2008/09, compared with £38m in 2007/08.
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