Money from land sales will build new schools, police stations and hospitals to handle Victoria's growing population, the state's treasurer says.
Ten schools and six police stations have been flagged for sale this financial year.
"If a school site has been closed by the former Labor government and it's disused, we have a responsibility to make sure that it can be turned into something productive," Treasurer Michael O'Brien told reporters on Wednesday.
The state budget promised 12 new schools and Mr O'Brien said the sale of land would contribute to the cost of building them.
Mr O'Brien was unable to say how much the government expected to reap from this year's land sales, but pointed to the success of the 2013/14 sales.
More than $100 million was raised from the sale of just six schools in Melbourne's east in 2013/14.
"All that funding goes back into new capital investment, it funds our new schools, it funds new police stations in growth areas," Mr O'Brien said.
But Monash mayor Geoff Lake, whose city bore the brunt of land sales in the past financial year, said the community lost valuable public open space when schools were sold.
He said part of the windfall money raised should be spent improving the community where it came from.
"It's difficult to replace public open space," Mr Lake told AAP.
The proposed 2014/15 sales include former school sites in Melbourne's west and regional areas, the Morwell Gasworks and part of the Bendigo Psychiatric Hospital.
Assistant Treasurer Gordon Rich-Phillips said the properties were offered to local councils and other government agencies before going on the market.
Shadow treasurer Tim Pallas said the sale processes were being pushed too quickly, with only a six-month time frame.
"What we are seeing from this government is a fire sale," Mr Pallas told reporters.
"The community has a right to be consulted."
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