Chief executive David Lenehan said upgrades at the facility were urgently required.

During the 2006 election, the Labor Party committed $8 million to fund the redevelopment of Trentham Residential Aged Care, a state-owned facility.

"The current building is old fashioned and has passed its used-by-date," Mr Lenehan said.

The 2008-09 State Budget will be released on Tuesday.

Mr Lenehan said HHS had engaged with the Department of Human Services and architects in anticipation of receiving the funding.

"We are expecting to get a positive result. If the money wasn't to come through we would be disappointed," he said.

The Trentham facility currently provides high and low-care beds for 35 residents.

However, despite dilapidated infrastructure and an unsuitable functional layout, the facility is still waiting on this essential funding.

Opposition spokeswoman for community services and ageing Mary Wooldridge said Trentham Residential Aged Care must be funded in the upcoming budget to ensure the safety of residents and peace of mind for their families.

"With an inadequate building design, this facility poses occupational health and safety risks for staff and residents.

It is vital this facility is given urgent attention in the upcoming budget," Ms Wooldridge said.

"They deserve to spend their older years in an appropriate facility," she said.

Government estimates show that between 2001 and 2031, regional Victoria's population aged over 60 is projected to grow by 133 per cent and over 80 by 553 per cent.

"The State Government must provide long-term planning to address the coming challenges of our ageing population," Ms Wooldridge said.