MORE than $3million in infrastructure funding for the Southern Downs hangs in the balance in today's State Budget announcement.

Mayor Tracy Dobie said Southern Downs Regional Council had applied for four projects under the Building Our Regions program.

The council included the upgrades to the Warwick and Stanthorpe Aerodromes at $700,000 each, the $2.2million upgrades as part of stage two of the Warwick effluent reuse project, and $3.7million to construct the water main between Storm King Dam and Stanthorpe Water Treatment Plant in the draft budget.

Cr Dobie said the funding stream was crucial to completing the planned upgrades in the next financial year, as the State Government would match council expenses.

"Each of those projects would be 50% funded by the State Government if our applications are successful,” she said.

"It makes it financially viable to complete these projects while we are still reducing our debt and if that funding doesn't come through we will have to rethink taking on those projects in the coming financial year.

"Building Our Regions is one of the major funding streams we apply to each year and we may be eligible to apply for other funding as the State Government makes other allocations to infrastructure.”

Member for Southern Downs Lawrence Springborg said the cost of living for residents in his electorate had risen and he hoped the budget would help lessen the impact on taxpayers.

"I think real reform is needed in electricity pricing to make it affordable for business owners to do business and householders to be able to afford their domestic expenses,” Mr Springborg said.

"Something I hear from people over and over is that more needs to be done in terms of cost of living relief for individuals and businesses.

"It's important for Southern Downs communities that we have less red tape and make it more affordable for businesses to employ people and make a profit.”

Like Mr Springborg, Southern Downs Residents Action Group secretary Andrew Gale said he hoped to see funding for the Accommodation Creek Bridge.

"This continues to be a very dangerous passage that has been in discussion for years but has long been overlooked,” Mr Gale said.

"There doesn't appear to be a lot in this budget for inland southern Queensland, at least from what's been leaked thus far.

"Increased energy costs are also a great concern for us.

"Though there have been subsidies offered it worries me we have to give people subsidies to offset the high prices rather than attacking the root cause of the problem and stabilising prices.”

Mr Springborg said the region's hospitals and schools had sustained a relatively high level of attention.

"While we do not benefit directly as a council, one of great things about our region is the high quality of education and health,” Cr Dobie said.

"We are keen to see this continue as its an important part of attracting residents to the Southern Downs.”