As predicted in yesterday's Illawarra Mercury, the Iemma government's total infrastructure spending of $423 million is a $32 million cut on last year's record of $455 million.

The government has delivered the final payments on the Princes Hwy's missing link between Oak Flats and Dunmore and the Northern Distributor, which was mooted in the 1960s.

Total spending on the Princes Hwy for 2008-09 will be $144 million, with $45 million for the Princes Hwy project and $33 million for the Northern Distributor extension from Bellambi Lane to the Princes Highway at Bulli.

Hospital and health services will receive an additional $76 million, bringing the total health budget for the South Eastern Sydney Illawarra Area Health Service to $1.79 billion.

Ailing mental health services at Shellharbour and Wollongong hospitals have been given a welcome $6.5 million boost, with $3.2 million for child and adolescent services to be established at Shellharbour Hospital.

Wollongong Hospital's psychiatric emergency care centre receives an additional $1.8 million.

Residents across south-eastern Sydney and the Illawarra are also expected to benefit from a $32 million statewide investment in new hospital equipment which will include $1 million for new operating theatre facilities at Wollongong.

Infrastructure spending on upgrading electricity transmission assets has increased as part of the government's $3.5 billion program across the state.

More than $73 million has been earmarked for capital works programs on the Springhill substation and smaller projects at Russell Vale and Corrimal.

There were several disappointments for the region, including no announcements on the proposed F6 extension, the Picton Rd upgrade and little increase in new education spending.

Special eight-page budget wrap-up in Wednesday's Mercury