The Allegheny Regional Asset District board approved the largest budget in its 14-year history yesterday -- $84 million that will be disbursed to local arts, cultural and recreational groups in 2008.

Next year's spending plan represents a 7.1 percent increase over a revised 2007 budget estimated at $78.5 million. The new budget will fund 90 arts, cultural and recreation groups, up three from this year.

Revenue will come from an estimated $77.9 million in sales tax receipts and interest earnings and $6.1 million from district reserves.

That's nearly $4.7 million more in revenue than in 2007, in large part because of spending from the reserves. Revenues from the 0.5 percent county sales tax earmarked to fund RAD are actually projected to be down $800,000 next year from 2007.

Given that, and predictions of a possible recession next year by some, the board's allocation committee warned groups that the same level of operating support and discretionary capital grants may not be available in future years.

Dan Griffin, a member of the allocation committee, said the board chose to dip deeply into reserves to fund requests next year because the surplus was at such a high level, in excess of $20 million.

"We do have a reserve. It is tax money. It is not money that we should be keeping in our pocket," he said.

The 2008 spending plan will fund $79.3 million in operating grants, including administration, and another $4.7 million in capital grants.

A $500,000 capital grant will go toward purchase and construction of the final nine miles of trails needed to complete the Great Allegheny Passage, which will link Pittsburgh and Cumberland, Md. The project is part of the city's 250th birthday celebration next year.

Other notable capital grants include $1 million to the county regional parks system for improvements at White Oak, Round Hill and South parks; $600,000 to the Carnegie Library of Pittsburgh for central branch upgrades and renovations to the material distribution center; $224,000 for various repairs at the Pittsburgh Zoo & PPG Aquarium; and $100,000 to the Pittsburgh Symphony for roof repairs to Heinz Hall.

The largest operating grant, at $17.6 million, will go to the Carnegie Library of Pittsburgh, followed by the county regional parks at $17 million. The Allegheny County Library Association will receive $8 million. The city regional parks will receive a $4.7 million operating grant and a $774,000 capital grant to resurface tennis courts and to repair and resurface roads, sidewalks and steps.

The city-county Sports & Exhibition Authority will receive a total of $16.4 million, in large part to pay debt service on Heinz Field and PNC Park ($13.4 million) and Mellon Arena improvements ($1 million). It will get another $2 million to cover operating deficits at the David L. Lawrence Convention Center.

County Chief Executive Dan Onorato has described the use of RAD funding to cover the deficit as a "temporary move" designed to fill the gap until slot machine revenues statewide are available. Once that happens, the convention center is earmarked to receive $2 million a year for 10 years from the state to apply against the shortfalls.

Between the release of the preliminary budget in October and last night's final passage, the board added $917,100 in spending, nearly all for capital improvements.

Overall, libraries account for 31 percent of funding next year; parks, trails and other green space, 30 percent; stadiums and arenas, 17 percent; regional facilities like the zoo, aviary and conservatory, 11 percent; and arts and cultural programs, 10 percent.

With the new budget, RAD will have allocated nearly $1 billion to local arts, cultural and recreational groups since the program began in 1995.

Also yesterday, the board gave final approval to 14 renaissance grants totaling $256,670 for 2007. The first-ever grants were awarded for collaborations between local groups and students on projects honoring the city's upcoming 250th birthday.

In another matter, Regional Asset District offices will relocate from the One Smithfield Street building to the Regional Enterprise Tower, Downtown, in March. The board approved a lease agreement for the space at yesterday's meeting.