Warrnambool has missed out on funding for three crucial projects but the region's crumbling road network will get a much needed boost from Tuesday's state budget.
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Treasurer Tim Pallas said stubbornly high inflation and workforce shortages required "fiscal discipline" from the government.
Capital spending has been slashed as a result and Warrnambool's long-awaited The Lookout drug and alcohol residential rehabilitation facility, and tech school promised before the 2022 state election were both overlooked for funding.
The Warrnambool Base Hospital redevelopment will see $134.8 million spent in 2024-25, but there was no increase to the $384.2 million budget despite sources inside the project saying it needs at least $100 million to deliver the original scope.
The hospital's $10.9 million investment for five extra acute mental health beds will be delivered by July 2025, two years behind schedule.
Cobden Tech School was the only south-west project to receive funding in the budget with $6.6 million for upgrades to the facility.
The government will also spend $921,000 to plan and install car parking infrastructure at the Twelve Apostles.
Portland will get $100,000 towards upgrades at its BMX track, including a rebuild of the start hill.
Warrnambool Food Share is one of six regional food relief hubs which, along with other organisations, will share in $3.5 million to address the cost of living crisis.
The government is also directing $1.7 million to Beyond The Bell which works to improve the outcomes for young people across the south-west both in and out of the classroom.
Member for Western Victoria Jacinta Ermacora said with additional investments in roads, cost of living support, sporting facilities, and community groups the budget was delivering for communities across western Victoria.
"This budget will make a real difference to families," she said.
The south-west's dilapidated roads will receive attention thanks to an extra $105 million for repairs statewide.
The Department of Transport has also brought forward funding from its $6.6 billion decade-long investment, and plans to pour $964 million into statewide road maintenance in 2024-25. It is unclear how much of the overall figure will be spent in the south-west.
The extra investment follows a catastrophic two years for regional roads with extreme weather damaging large parts of the network.
The Transport Department scrapped repair targets entirely in 2023-24 with the amount of refurbished road surface dropping 96 per cent as a result.
In 2022-23 road crews repaired more than 9 million square metres of road surface but in 2023-24 just 343,000 square metres were refurbished.
Healthcare in the region will benefit from an unprecedented $11 billion investment in the health system, including $8.8 billion for hospitals across the state.
The investment follows a 2023-24 financial year where Victoria's hospital system was tracking for a $3 billion deficit with many regional services worrying about being able to pay staff.
South-west parents will get $400 per school-aged child to assist with uniforms, books and other essentials.
Premier Jacinta Allan said the payment was a recognition of the cost-of-living pressures hitting young families.
"We know inflation is hurting - that's why this budget is all about making life that little bit easier for families, including help to cover the costs of sending kids to school," Ms Allan said.
"It's also a budget that makes the sensible and disciplined decisions to respond to the challenges ahead and secure a strong future for our state."
The regional rail network will get $133 million, including $61 million for network enhancements like maintaining five services per day on the Warrnambool line.
