HARRISBURG — Deteriorating state tax collections might mean more program cuts and layoffs in state government, regardless of whether the Legislature authorizes an expansion of legalized casino gambling to raise more revenue, Gov. Ed Rendell said Wednesday.

The House of Representatives was scheduled today to debate a measure to legalize table games at the state's slot-machine casinos.

Democratic leaders adjourned an unusually long Wednesday night session after they were unable to plow through Republican opposition to reach a preliminary vote.

Legalizing casino table games is a key piece of October's state budget agreement that resolved a multibillion-dollar, recession-driven shortfall.

However, tax collections have continued to fall short of the state's lowered revenue expectations and the House and Senate have struggled since then to agree on the details of an actual gambling bill.

A table games bill was supposed to deliver about $320 million to the state treasury over the next two years.

To ensure the state's spending does not outgrow its projected revenues beyond this year, Rendell and House Democrats are holding up about $675 million in discretionary money for Penn State, Temple and Pitt until a table games bill passes.

The holdup in subsidies has prompted the three universities to threaten second-semester tuition increases for more than 150,000 students, while Republicans insist the state's existing revenues can support the extra spending.

Rendell said he expects to make a decision by Jan. 1 on what kinds of further cuts and layoffs are necessary.

The Rendell administration already has laid off more than 760 employees this year, or about 1 percent of the state work force, because of spending cuts necessary to balance the budget.