Support for affordable housing and healthcare workers got the tick of approval from the Illawarra mayors.
But concerns were raised about infrastructure spending in West Dapto, roads in Shellharbour and the city's rail line.
Kiama Mayor Neil Reilly was pleased with the $2.5 billion in funding to go to bolstering employment in health care.
"I'm pleased for the support of health workers and I think it's absolutely necessary in our area," Cr Reilly said.
"I recently wrote to the minister for health, state and federal, as well as the Illawarra Shoalhaven Health District looking to see what we can do to improve the medical services here, particularly with regard to GPs.
"I think the whole regional health system has been pretty well supported."
Wollongong Lord Mayor Gordon Bradbery drew attention to the $2.2 billion plan to improve the state's chronic housing shortage.
"I think that's a very commendable bit of expenditure to address the housing crisis," Cr Bradbery said.
"I think that should be highlighted as perhaps the greatest contribution that's going to come out of the state budget."
Shellharbour Mayor Chris Homer also supported the funding boost for housing and health care.
"I think anything that can be thrown at these absolutely diabolical issues like housing and health, a lot of public sectors, they all need help," Cr Homer said.
"I think anything in the budget that helps these sectors or is at least on the way of moving forward and not contracting can only be of benefit."
Cr Homer was also happy with the $117 million funding allocation for the new Shellharbour Hospital but noted there seemed to be nothing for the Tripoli Way bypass even though promises were made by both parties during the election campaign.
"I know it was advocated for in the last state election," he said.
"I don't know whether there is still some finer details to be reviewed, As of yet I can't see any extra funds for Tripoli Way as yet."
Cr Reilly joked the council's grants manager would be working overtime to go through the budget to find areas that might benefit Kiama.
"I hope it's a budget that benefits all but I've got to be a little bit parochial and hope that we do better than what we've done previously out of former state governments," Cr Reilly said.
The budget included planning money for a new primary school at West Dapto and in Calderwood, but Cr Bradbery said that didn't go far enough.
"We've identified at least five schools are required out there," Cr Bradbery said of West Dapto.
"It's a bit short sighted in terms of future planning for that location. Intensifying things around West Dapto Primary School is one thing but we need to have more spent on education and more specifically schools in West Dapto.
"That's been identified for a long time as a vital part of the infrastructure required out there but that hasn't been progressed aside from that school at West Dapto and Calderwood."
Cr Homer also noted that planning money was there for Shellharbour schools there seemed to be no construction timeline.
Cr Bradbery also wanted to see a focus on bolstering the South Coast rail line.
"We need more resilient transport Infrastructure down here, because the last massive rain event that we had down here this city and location was isolated," he said.
"That really highlighted the inadequacies and the fragility of our transport system."
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