The Heinz History Center, which recently took a second round of cuts in state funding, is reducing operating budgets, freezing hiring and pay raises and re-evaluating its operating hours and library services to help offset financial shortfalls.

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

The museum, which has a budget of $8,147,000, has in years past received a general allocation from the state for $600,000, said Betty Arenth, the center's senior vice president.

"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.

In the past, the museum, on Smallman Street in the Strip District, also received grants from the Pennsylvania Historical & Museum Commission for as much as $112,000, but that dropped to $45,000 this year.

While the Allegheny County Regional Asset District awarded a $400,000 grant to the history center, the board is withholding 10 percent because it is uncertain how much sales tax revenue it will have to distribute in 2009. The board distributes one-half of the revenue from Allegheny County's 1 percent sales tax.

David Donahoe, executive director of the asset district, said withholding 10 percent of grants has been standard practice for the nine organizations that RAD funds regularly, including the Carnegie Library of Pittsburgh, Carnegie Museums, Phipps Conservatory, city and county parks, the zoo and aviary. Those nine organizations receive 73 percent of the money, he said.

This year, Mr. Donahoe said, the RAD board decided to withhold 10 percent of the grants it awarded to all agencies. Earlier this month, the board passed a budget of $80.3 million.

The history center's endowment took a hit, too. In June, it had nearly $20 million. In October, that figure fell to $15 million. The museum takes a 5 percent draw from the endowment and uses that money, along with drawing on a $1.95 million line of credit, to fund operations, Ms. Arenth said.

The economic downturn also prompted cancellation of about a dozen parties at the museum. Ms. Arenth said income from those events is likely to be $100,000 to $150,000 less than an anticipated $721,000.

In 2004, the museum concluded its last capital campaign, raising $26 million for a new wing that includes the Western Pennsylvania Sports Museum, the McGuinn Gallery and the Mueller Education Center.

"Looking at these shortfalls in revenue, we're looking at what are the best ways to reduce expenditures to balance revenue. Those decisions haven't been made yet," Ms. Arenth said.

The museum remains committed to an exhibition about Abraham Lincoln, slated to open in June 2009.

One bright spot in the picture is an increase in attendance. From Jan. 1 to Nov. 30, 2007, the museum had 114,152 visitors. During that same period this year, the museum had 121,248 visitors, a 6.2 percent increase.