Differences between Democrats and Republicans - which may be symbolized as the clash of the titans Mitch Daniels and Patrick Bauer - have guaranteed that at least two critical issues remain for the General Assembly to resolve before its scheduled adjournment time Wednesday. And at least two important issues have been punted, guaranteeing that the Mitch and Pat Show will give us an interesting legislative session next year, too.

This year's biggies are the budget, which is the only thing legislators are required to do this year, and fixing the broken unemployment insurance system, which necessity has forced on them. The two waiting for next year's session are whether to make property tax caps permanent by putting them in the state constitution and whether to enact all or any of the Kernan-Sheperd recommendations on local-government reform.

Gov. Daniels can't be too happy with the proposed versions of the budget from either House or Senate. The Senate has a traditional two-year budget, but it's loaded up with federal stimulus money. The House wants just a one-year budget, which would mean a whole new round of budget talks next year. Neither version exactly holds the line on spending at a time when revenue forecasts are grim and getting grimmer.

Senate Republicans and House Democrats also disagree on how to fix the unemployment system, which has been paying out millions more than it takes in and is nearly $1 billion in debt to the federal government. What they have to work out is how much employers should contribute in higher taxes and how much the unemployed would contribute by way of reduced benefits and tightened standards. It seems cruel to cut too much from those the funds are supposed to benefit, but taxing employers too much could just create even more unemployment.

Both issues are tricky but doable, and legislators have known of the major differences in policy approach since before the session. There is no excuse for the General Assembly to drop the ball and have to go into a special session, and taxpayers should be prepared to tell legislators exactly that.

On the two punted issues, Daniels can blame House Speaker Bauer for one, but could identify a lot of obstructionists on the other.

The governor really wanted legislators to vote on putting property tax caps into the constitution, which, after all, was the intent when the legislation was passed. Bauer held the measure up in the House, saying the state should wait and see what effects the caps have on local governments. If the legislature doesn't act next year, the ability to make the caps permanent will be gone, and legislators can change them however they please.

The governor also wanted legislators to act on at least some of the Kernan-Shepard commission recommendations on local-government reform, perhaps elimination of townships or consolidation of small school districts. Bauer didn't like that idea, either, but the governor didn't get exactly overwhelming support from Senate Republicans. Perhaps if those local governments do find themselves in a property tax bind next year, they will put less pressure on legislators to block streamlining efforts.