The money in Monday's state budget comes amid a parliamentary inquiry into the troubled sector and is aimed at finding a solution with councils, developing markets for recycled materials, and educating industry and communities.

It follows large factory fires involving waste stockpiles at Coolaroo, West Footscray and Campbellfield, and China's ban on foreign waste which meant kerbside recycling went to landfill in some council areas.

The state's environmental watchdog will receive a $15 million boost to further crack down on pollution and waste.

The Environment Protection Authority is also getting $29.5 million in 2019/20 to clean up a waste stockpile at Lara, near Geelong, after previous operator C&D Recycling let it grow to dangerous levels.

The clean-up bill for the 320,000 cubic metres of waste could reach $100 million, the government said when it confirmed the funding in April.

The Municipal Association of Victoria labelled as "grossly inadequate" the $34.9 million recycling spend, given the scale of the problem.

Environment Victoria said the money was the first step to getting the recycling sector back on track.

Other environmental spends in Victoria's 2019/20 budget include almost $7 million for park rangers and $4.5 million to protect coastal environments.

The Victorian National Parks Association said more money was needed for its frontline workers who help preservation efforts, including pest control.

"In the face of a growing global, and local, extinction crisis we need to significantly ramp up investment in nature," executive director Matt Ruchel said.

Australian Associated Press