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DES MOINES Majority Senate Democrats issued a fiscal 2016 budget outline Tuesday that calls for spending the same $7.341 billion proposed by Republican Gov. Terry Branstad but parts ways on his priorities by seeking a higher investment for K-12 schools for the coming school year.

Its time to break the budget gridlock, said Sen. Bob Dvorsky, D-Coralville, chairman of the Senate Appropriations Committee. Our balanced budget is sustainable and spends less than the state takes in.

Tuesdays announcement caught majority Republicans in the House by surprise and could draw out the negotiating process given that GOP legislators were operating under the assumption the Legislature would be working under joint spending targets, said Rep. Chuck Soderberg, R-LeMars, chairman of the House Appropriations Committee.

Its disappointing I guess to know that theyve released their targets and not working on joint targets, Soderberg said.

The Senate Democratic plan calls for a 2.625 percent increase in state support for Iowas local schools, a tuition freeze for in-state students at Iowas regent universities for a third straight year, fully funding property tax credits and meeting 2013 commitments to property-tax relief and education reform. The plan includes an early-retirement incentive plan for eligible state employees that Democrats project will save the state $16.1 million in the next fiscal year.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, said Democrats have been working with majority House Republicans to resolve budget differences but decided to move ahead with spending targets Tuesday while Branstad and GOP legislators work to forge their consensus approach. House Republicans were at a $7.175 billion level for fiscal 2016, leaving a $166 million difference with the spending level set by the governor and now Senate Democrats.

We think its time to start moving our budgets, Gronstal said in an interview. He said Senate Democrats adopted the same use of $129 million from the states surplus ending balance to fund the overall 5 percent growth in general fund spending.

We figure thats an appropriate place to be, Gronstal said of the decision to adopt the governors overall spending level. We dont do everything in the budget the same way that the governor does it, but thats fiscally responsible. We know that well have challenges in the next fiscal year.

Soderberg said GOP lawmakers plan to stick with the budgeting principles not to spend more money than the state collects in yearly revenue and not to use one-time money to fund ongoing programs or expenses. He likened to do otherwise to a family using a savings account to pay for a home mortgage.

Weve stood firm on our prinicles for five years. I do not anticipate that that would change because I think Iowans expect that, he said. Anytime you spend more than what you have, that obviously creates a problem.

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Senate Democrats seek same spending level as Branstad