Both Republicans and Democrats are calling Sunday’s budget deal a hard-fought compromise. While the deal boosts the general fund overall by 6%, both sides gave in a little on some key issues.

Gov. Tim Walz doesn’t get his 20-cent-per gallon increase on the gas tax. He was hoping to use the money generated from that extra tax to pay for replacing the state’s deteriorating highways and bridges. While everybody agrees on the need, the 20-cent tax increase wasn’t popular among rural motorists who would see their fuel bills skyrocket.

Walz also agreed to trim the 2 percent tax on health care services that was set to expire this year. The tax will be extended at 1.8 percent. Extending the tax is good news because revenues from these taxes pay for the MinnesotaCare program, which provides state-subsidized health care coverage for low-income individuals.

Walz also compromised on giving an income tax cut for the middle class. This brings the state tax code into conformity with the federal code, simplifying tax returns.

Republicans, however, agreed to increase education funding at 2 percent per pupil. While this is less than Walz sought, it’s significantly more than the 0.5 percent a year increase in the Republican plan. This is good news for rural school districts such as Marshall. The Marshall Public Schools District needs the extra help in dealing with falling four-year graduation rates due to the increase in special education and english-learning students.

Meanwhile, members of the Legislature are patting themselves on the back for reaching the budget compromise just before Monday’s midnight deadline. The deal is also receiving endorsements throughout the state. The Minnesota Chamber of Commerce proclaimed the agreement “represents a wise use of tax dollars” while funding key priorities.

The deal also proves that a divided government can work to get things done. That’s something you don’t see in Washington or in other states.