The First Peoples' Assembly of Victoria has assessed this year's State Budget as a "mixed bag" for the Aboriginal Community.

The Assembly welcomed new funding for initiatives that put First Peoples experts "in the driver's seat" of decision making, including investment in community-owned vocational education, First Nations' business development, and joint management of Country.

New funding for the Wamba Wemba Aboriginal Corporation to support their work on cultural heritage is a highlight, following their uptake of a reserved seat with the Assembly last year.

However, the Assembly identified a "real concern for vital services"—such as the Victorian Aboriginal Legal Services - which continue to face "significant short-term funding and ongoing uncertainty".

"While the Budget allocates $1.6 billion for bail reform, much of this will go towards building new prisons rather than investing in programs that help keep our young people out of the justice system," the First Peoples' Assembly noted in a statement on Wednesday.

First Peoples' Assembly Co-Chair, Gunditjmara man, Rueben Berg said the budget "shows the government is starting to get the importance of putting self-determination at the heart of all we do here in Victoria, but our community is still being left behind where it matters most—long-term, secure investment".

"It's disappointing to see so much money going into building prisons, when what we really need is investment in programs that keep our young people out of the justice system in the first place," he said.

The $12.5 million commitment to the Dandenong and District Aborigines Co-Operative (DDACL) is a welcome relief, the Assembly said, but "sustained investment in First Peoples' organisations remains severely lacking".

The Assembly noted that Infrastructure Victoria has recommended an additional $100–150 million is needed to meet immediate needs.