The state government this week delivered on its promise to fund the second stage of the upgrade in the 2015 state budget. 

The announcement follows years of community campaigning and advocacy, after several sections of the school fell into disrepair.

The revamp will "bring the school into the 21st century" and include a food technology centre, new student amenities and updated classrooms. 

Some buildings will be demolished to make way for new facilities, with temporary portables also to be removed. 

Mr Holmes said works would take upwards of 18 months to complete, when an agreement could be finalised between the school and education department. 

"This will just make a huge difference for the broader community," he said.

"No doubt it will see more student enrolments and more people attracted to the region." 

Macedon MP Mary-Anne Thomas visited the school on Friday, crediting the community's hard work in ensuring the upgrade went ahead.

She said it was a great day for all the parents, teachers and students who fought for the redevelopment. 

"This happened because we had a community that wasn’t being listened to but a community that wouldn’t be silenced," she said. 

"They campaigned effectively over a period of time and I congratulate all the (people) who campaigned for this, who sent me the petitions and who invited me to their rallies

"The money is there, now the school just needs to work with the education department to make it happen."

She said the government had delivered on 96 per cent of its pre-election promises in Victoria, with many other funding announcements expected to help the local area. 

"There has been $500 million committed to in the Regional Jobs and Infrastructure Fund, which is money available to our local employers to apply for," Ms Thomas said. 

"The wine industry will also benefit from a $1 million fund towards investment and tourism."

Creswick District Hospital will receive money for inpatient end of life care and major projects including the Eureka Stadium and the Ballarat Railway precinct will all receive funding.

Funding for a new ambulance station in Wendouree and the construction of a second cardiovascular catheterisation lab at the Ballarat Base Hospital were also included in the budget.

Kyneton primary and secondary schools will also be completed by mid-2017, with $8 million and $5 million contributed to each campus, and stage two of the Castlemaine Secondary College works received $2.5 million.