The David L. Lawrence Convention Center would receive Allegheny Regional Asset District funding for the first time under a proposed $77 million budget unveiled yesterday.

		Related coverage See the Allegheny Regional Asset District's press release, which includes grant distribution information.

Asset district board members are recommending that the convention center receive $2 million in 2007 to cover its operating deficit, a persistent problem that has vexed local political leaders.

The convention center is among 87 civic, cultural and recreational groups, organizations, or facilities to receive funding in the preliminary budget, the district's largest in its 13-year history, both in dollar amount and number of groups funded. The budget was released during last night's board meeting. A budget vote tentatively is scheduled Nov. 27.

Although a number of other regional facilities, such as Heinz Field, PNC Park and the Pittsburgh Zoo and PPG Aquarium have been funded in the past, the convention center has never been among them.

However, in August, Allegheny County Chief Executive Dan Onorato and then-Mayor Bob O'Connor, through the city-county Sports & Exhibition Authority, requested $2 million from the asset district to cover the convention center deficit in 2007. The chief executive and the mayor appoint asset district board members.

The request replaced the authority's initial application for up to $1 million to make repairs to aging Mellon Arena, the oldest facility in the National Hockey League.

In recommending the convention center funding, the RAD board's allocation committee said the net cost of the request is $600,000 because RAD-covered debt service payments on the arena are dropping by $1.4 million next year, freeing up money.

Mr. Onorato has described the use of RAD funding, derived from county sales tax revenue, as a "temporary move" designed to fill the gap until slot machine revenues statewide start flowing.

Once that happens, the sports authority is earmarked to get $2 million a year for 10 years from the state to apply against the convention center deficits.

"We basically have a promise that it is a temporary funding mechanism until slots revenue kicks in," said Dan Griffin, a member of the RAD board's allocation committee.

In its report, the committee said it was "vital that this regional facility meet its commitments next year while permanent funding is secured." Without the RAD bailout, the city and the county could be on the hook to cover the shortfall.

Because arena debt service payments are dropping, the proposed convention center funding did not affect any of the other allocations, Mr. Griffin said.

The proposed budget is $2.4 million higher than the one adopted for this year. One reason is that overall revenues, after several flat years, are rising again. The district expects to receive $2 million more than the $73.3 million projected this year in sales tax revenue and interest earnings.

Besides the convention center, six other organizations are getting money for the first time in the proposed budget: American Jewish Museum ($2,500), Attack Theatre ($2,500), LABCO Dance Company ($2,500), New Hazlett Theater ($2,500), Pittsburgh Community Broadcasting/WYEP ($25,000) and Tides Center-Sprout Fund ($2,500).

The $77 million in spending would be covered by an estimated $75.5 million in sales tax revenue and interest and $1.5 million in district reserves. The bulk of the asset district's funding comes from half of the 1 percent county sales tax.

About 32 percent of overall spending would go to city and county libraries; 28 percent to parks, trails and other green space projects; 19 percent to Heinz Field, PNC Park and Mellon Arena; 11 percent to regional facilities such as the zoo, Phipps Conservatory and Botanical Gardens and the convention center; and 9 percent to cultural and arts groups.

The largest single operating grant would go to Carnegie Library of Pittsburgh at $16.7 million, followed by the county regional parks at $14.3 million, and the two stadiums at $13.4 million.

The $77 million budget includes $2.3 million in capital grants, with $750,000 each going to the county and city regional parks. The zoo, the Carnegie Library, the Carnegie Museums, National Aviary, and conservatory are recommended for $150,000 each.

A public hearing on the proposed budget is scheduled Oct. 23 from 5:30 to 7:30 p.m. Those wishing to testify must register by 4:30 p.m. Oct. 19 by calling 412-227-1900.