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Economic downturn hits Heinz History Center
Tuesday, December 23, 2008

The Heinz History Center, which learned of additional cuts in government funding last week, is reducing operating budgets, freezing pay raises and hiring, and re-evaluating its hours of operation and services.

In a newsletter e-mailed today, Andrew E. Masich, president and chief executive officer, told members of the center's woes and appealed for financial support.

Betty Arenth, senior vice president, said the Allegheny County Regional Asset District will withhold 10 percent of a $400,000 grant awarded to the history center because it is uncertain about sales tax revenues, which it distributes to local nonprofits.

The museum, which has a budget of $8,147,000, has in years past received a general allocation from the state of Pennsylvania for $600,000.

"This year, we were awarded $350,000. They cut it to $335,000. Two weeks ago, they cut it to $329,000. They have told us they are going to cut it again in January and payments may not come until June," Ms. Arenth said, adding that the museum's fiscal year ends on June 30, 2009.

In past years, the museum also got grants from the Pennsylvania Historical & Museum Commission for as much as $112,000, but that figure dropped to $45,000 this year.

The museum's endowment, which was nearly $20 million in June, dropped to $15 million in November. The museum takes a 5 percent draw on that endowment for operating expenses.

In addition, the earned income the museum receives from catered events such as office parties and weddings is down between $100,000 and $150,000.

"With the downturn in the economy, we are being impacted. We have to be vigilant about matching revenue and expenses so we can continue to operate within fiscal constraints," Ms. Arenth said.

More details in tomorrow's Pittsburgh Post-Gazette.

First published on December 23, 2008 at 1:07 pm