Carnegie Museums of Pittsburgh, which has become "increasingly concerned about the financial health" of the Three Rivers Arts Festival, is assuming responsibility for day-to-day operations and has eliminated the festival's two senior managerial positions.

"By taking this step now, we have an opportunity to not only better assess the organization's finances, but also re-evaluate its operations and its mission. An important first step -- and the responsible thing to do -- was to put a halt on most expenses until we complete that assessment," David Hillenbrand, president of Carnegie Museums of Pittsburgh, said in a prepared statement yesterday.

The executive director position, held by Elizabeth Reiss since 2001, was eliminated. Also eliminated was associate director Chris Taylor, who was hired in May of last year. Ms. Reiss had no comment, and Mr. Taylor could not be reached for comment.

The budget for this year's 49th annual festival was $1.6 million, $1.1 million of which was allocated to the 17-day arts festival. For the past two years, the organization has had to scramble for Downtown sites while its usual venue, Point State Park, was under construction.

Deborah Acklin, chair of the festival's advisory committee, said the organization has a cash-flow deficit but did not know the figure.

Carnegie Institute board members were notified yesterday that Carnegie Museums of Pittsburgh would take over management of the organization that produces the festival as well as First Night Pittsburgh and other arts events throughout the year.

Betsy Momich, a spokeswoman for Carnegie Museums, said other festival staff will not be affected by the decision.

The museum's decision to take over the management reverses a move it made earlier this year. In March, Mr. Hillenbrand announced that the festival would become independent of the museum. For two decades, the festival had been largely independent from Carnegie Museums except for support in areas like human resources.

In 2007, the festival eliminated two staff positions because it anticipated losing money because it could no longer use Point State Park as a venue.

Festival organizers made more use of Market Square than in the past, and they purchased 10 metal cargo containers for installation art.

Critics found the artwork varied in its success. When temperatures reached the 90s, they became unbearable for visitors and artists putting in long hours inside the containers.

The Three Rivers Arts Festival began in 1960 and was a two-day event organized by the Women's Committee of Carnegie Museum of Art. Since then, the organization has expanded its arts programming.

The festival is set to celebrate its 50th anniversary next year.