Blue Mountains MP, Trish Doyle, has criticised last week's state budget for failing to fund important projects in the Mountains, including upgrades to Katoomba hospital and adequate social and public housing.
Local school upgrades also missed out and inadequate levels of funding for essential services such as social housing, public transport and emergency services remain, Ms Doyle said.
"We need meaningful action to tackle the cost-of-living crisis, to restore domestic manufacturing and to protect our unique natural environment.
"We've seen next-to-nothing in this budget to tackle inequality, support essential workers or to deal with the critical shortage of public and social housing in our community. Only $540,000 has been allocated to the whole electorate for social housing upgrades; that's not even the value of an average house."
Opposition leader, Chris Minns, in his budget reply speech promised to build 100 new government-owned preschools, help commuters with toll relief and keep public assets in public hands.
He also undertook to boost domestic manufacturing by setting a 50 per cent minimum local content requirement for future rolling stock contracts.
Meanwhile, the budget did maintain the government's commitment of $3.2 billion over four years for the Great Western Highway upgrade, despite recent reports that the project may be put on the backburner.
Michael Paag, secretary of the Blackheath Alliance and spokesperson for the Blackheath Highway Action Group said the financial allocation was "much welcomed news".
"Despite recent media speculation, the NSW government has now locked in its original commitment of $2.5 billion plus an extra $700 million towards the cost of the 11km Blackheath Mount Victoria tunnel.
"We are now one step closer to securing the much needed tunnel.
"The tunnel will bypass congestion, bypass the convict built bridge at Victoria Pass and bypass the old and failing infrastructure which plagues the highway west of Evans Lookout Road.
"The state and national significance and strategic importance of the tunnel cannot be understated because it will deliver a four lane 80km/h highway from Blackheath through the upper end of the Blue Mountains and down into Hartley Valley providing a much more safer, resilient and reliable transport corridor between Sydney and the Central West whilst preserving the environmental, social and economic fabric of both Blackheath and Mount Victoria.
"Our communities have fought very hard to ensure the tunnel was selected as the preferred option because it's the only way to put a four lane highway west of Blackheath. As everyone knows the only way to save homes, protect local businesses, preserve our communities and deal with congestion is to go under Blackheath and Mount Victoria."
The Gazette has contacted the office of NSW Upper House Liberal MP Shayne Mallard for comment.