INDIANAPOLIS -- A long day of talks Thursday between Republican and Democratic leaders may have paved the way for state legislators to adjourn by the end of the week.

The main sticking point continues to be the bill that would roll back a scheduled tax increase on businesses to pay for unemployment benefits, an increase Republicans describe as a job killer, 6News' Norman Cox reported.

Democrats' won't agree to that unless Republicans include several new job creation programs and a provision that labor wants to prevent companies from reclassifying workers as independent contractors ineligible for unemployment.

Both sides agree they've narrowed their differences, but wouldn't say how close they are.

"We've put in dozens upon dozens of hours of negotiating," said Rep. Pat Bauer, D-Speaker. "And we've made some progress. But we're not there yet."

Republicans wouldn't say they have a deal, but they said they're taking the results of Thursday's talks to their caucus and asking for permission to sign the bill.

"I think we're down to the, 'Is this good enough to sign?' point," said Sen. Luke Kenley, R-Noblesville.

The two sides said they've also essentially reached an agreement on a bill to allow schools flexibility to transfer money from unused accounts to pay for operating expenses, and they're near agreement on Gov. Mitch Daniels' request to save money by merging the state's two big pension agencies.