The battle lines have been drawn for Minnesota’s $900 million projected budget surplus.

One month after Gov. Mark Dayton proposed to spend three-fourths of that surplus on early childhood education, racial disparities, rural broadband, mental health, targeted tax cuts and higher education, the House Republican majority offered their own proposal: spend all $900 million on tax cuts and transportation.

“Our priority is exactly squarely where we think it is with most Minnesotans: … a significant investment into our road and bridge infrastructure and some meaningful tax relief for middle-class Minnesotans,” Republican House Speaker Kurt Daudt said.

Republicans haven’t yet decided how much of that $900 million should go to transportation and how much to tax cuts.

In addition to spending the $900 million surplus, Republicans also propose some smaller spending items on other areas. But they would offset all of those proposals with cuts elsewhere in the budget.

A third budget proposal, from the Senate’s Democratic-Farmer-Labor majority, is expected next week. Lawmakers have until May 23 to wrap up their work for the session.

The state is operating under a $41.5 billion two-year budget passed in 2015. Any budget passed this year would be a supplement to that.

With Republicans controlling the House of Representatives and DFLers ruling the Senate, passing anything will require bipartisan agreement.

In a statement, Dayton criticized the GOP proposal.

“The House budget targets show a Republican caucus focused solely on their own political futures instead of Minnesota’s future,” he said.

Here’s what you need to know about the various budget proposals:

TRANSPORTATION

The Republican plan for transportation funding relies on shifting about $325 million per year in sales tax on auto parts from the general fund to roads and bridges. DFLers prefer a gas tax increase but have suggested they might accept that plan as part of a compromise. Both parties want to spend hundreds of millions of dollars a year on roads and bridges, though what to do for mass transit remains a point of division.

TAX CUTS

Both parties want to cut taxes but disagree about how much and for whom.

Republicans say they want to do major tax relief, focused on exempting some or all Social Security income from state income taxes, and providing property tax relief in rural areas. Dayton proposed more targeted proposals: $117 million in total for working families, child care and education expenses.

BONDING

In even-numbered years like 2016, Minnesota lawmakers traditionally pass a “bonding bill,” borrowing hundreds of millions of dollars for infrastructure projects around the state. Dayton has proposed borrowing $1.4 billion, but Daudt proposed borrowing $600 million.

Because a bonding bill requires a supermajority to pass, support from the minority party in both chambers is needed to pass one. House Minority Leader Paul Thissen, DFL-Minneapolis, said no House DFLers would vote for a bonding bill as small as $600 million, while Dayton’s $1.4 billion bill could face resistance from Republicans.

Among projects on the table for inclusion in a bonding bill are water infrastructure, local roads and bridges, upgrades at the state’s mental hospitals and higher education improvements.

BROADBAND

Dayton has proposed spending $100 million on rural broadband out of this year’s budget. The GOP proposal spends $35 million over two years.

Though all sides agree on the need to improve Internet connectivity in sparser areas of the state, Republicans say they’re concerned about not crowding out private investment or federal aid with state dollars. DFLers say the need is so big, the state can spend far more without preempting other sources of money.

EDUCATION

Republicans say they would free up $50 million by letting schools repay state loans early, and thus increase the resources available to schools.

Dayton’s plan spends considerably more: $77 million for early education, teacher training and student support, plus another $56 million for higher education.

POLYMET

Both Dayton and Daudt have proposed setting aside several million dollars to defend the state against expected legal challenges related to the proposed PolyMet mining project. Whether the state approves or rejects the controversial PolyMet mine, it’s expected to face a lawsuit.

REAL ID

Like Dayton’s budget plans released last month, the Republican plan does not set aside any money to implement federal Real ID identification standards. Lawmakers plan to adopt the security standards, which they resisted for nearly a decade, later this year.

Illinois, which has about two and a half times Minnesota’s population, estimates it will cost between $50 million to $60 million to put the standards in place in that state. Minnesota has no idea how much it would cost here because, until a new law passed last month, the state’s Department of Public Safety was legally barred from planning for the federal standards.

“We don’t know what the cost of Real ID is, so we are waiting for those numbers,” Knoblach said. “We just really can’t do anything without knowing those numbers.”

OTHER DIFFERENCES

While Dayton proposes $100 million to tackle racial disparities, Republicans haven’t earmarked any money for that. They argue the best way to deal with racial disparities is policy changes that give families more choices to escape low-performing schools.

Republicans have proposed several cuts in the existing budget, including $9.5 million in state government operations and millions of dollars in other areas. The specifics of these cuts will be left up to committees to determine, Daudt said. In a statement, Dayton said he’s opposed to these cuts.

Rachel E. Stassen-Berger contributed to this report.