The Colorado legislature unveiled a record $17.8 billion spending plan for next fiscal year, but said that the state still must pinch pennies as needs and wants continue to outpace a slight bump in state revenue.

This week, the Senate will take up the "long bill," the state budget for next year. The spending plan reflects a $1.3 billion, or 7.9 percent, jump in revenue.

If the plan is approved, the biggest winners would include health care, public schools, higher education, renewable energy, prisons and mental health needs.

Under the plan, spending would increase $185 million for public education, $52 million for health care, $52 million for higher education and $51 million for prisons.

The budget also calls for opening three driver's license offices in Larimer, Jefferson and Adams counties to ease long lines and a backlog.

State workers would receive an average 3.7 percent bump in pay, but lawmakers said that the increase wouldn't be enough to make up lost ground during the recession.

The state also plans to fund pay-for-performance by 1.5 percent, but individual raises would vary depending on how each employee's position fared on a salary survey - a comparison with similar jobs - that the state uses to set wages.

As part of budget talks, the Senate will divide into Democratic and Republican caucuses. Each group will propose its own amendments to the long bill, which was crafted by the six-member, bipartisan Joint Budget Committee.

In 2005, voters passed Referendum C to help state government recover from recession that led to almost $1 billion in budget cuts.

Although Ref C revenue is projected to be $5.35 billion over its five-year life - $2 billion more than anticipated - the state still feels a money crunch, said JBC Chairman Sen. Abel Tapia, D-Pueblo.

A chunk of that money was spent in the first year, backfilling the budget to prevent the closing of community colleges and state parks.

Additional Ref C money, above what could be spent on the budget, spilled into two separate funds, one for roads and another for capital construction.

Some of the highlights include an 8.5 percent increase for higher education - which would be the most it has received in years. Public schools would see a 6.7 percent increase, including $3.5 million bump to fund preschool and kindergarten programs.

Corrections would hire about 47 new full-time employees, mostly to serve as parole officers in an effort to keep inmates from going back to prison.

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