A bare majority of arts groups in Allegheny County report they have enough funding to make it through the year, but the prospects for 2010 and beyond are growing bleaker due to the economy.

In a survey taken last month by the Greater Pittsburgh Arts Council, 51 percent of the 55 organizations that responded reported that year-end budget projects will be in line with their original budget plans.

However, 47 percent or 26 groups project a budget shortfall while only one saw a chance to finish in better shape than originally calculated.

The results were released at a jam-packed meeting called by the arts council yesterday and labeled "Pittsburgh Arts in Tough Economic Times."

Mitch Swain, the council's chief executive officer, warned that the results might be too optimistic and urged all organizations to tighten their belts.

Although 49 percent said they plan to go with a similar budget next year, Mr. Swain asked, "How can they keep the same budget? I hope the (survey results) are incorrect."In another telling finding, 45 percent of those surveyed or 25 groups, are cutting expenses by a total of $2.5 million this year, including all four organizations with budgets of $5 million or more.

Most smaller groups -- under $250,000 -- are standing pat on spending in 2009 primarily because "we have nothing to cut," the survey reported.

"We have no goals for this meeting," said moderator Charlie Humphrey following Mr. Swain's presentation, "other than the fact that misery loves company."

Mr. Humphrey runs three organizations -- Pittsburgh Filmmakers, Pittsburgh Center for the Arts and the Pittsburgh Glass Center.

He then turned the program over to four key principals in the county's arts scene:

David Donahoe, executive director of the Allegheny Regional Asset District (RAD), a major source of arts funding. Janet Sarbaugh, longtime director of the arts and culture program of the Heinz Endowments, called by Mr. Humphrey "the Earth Mother of the Arts in Pittsburgh;" Germaine Williams, Pittsburgh Foundation's program officer for arts and culture; and Robert Alan Reed, new executive director of the Multicultural Arts Initiative.

"It's hard to believe, but last year was the best in RAD history (for revenue)," Mr. Donahoe said. "Now, I'm assuming a 5 percent drop in revenue" for this year, explaining why RAD has withheld 10 percent of funds initially committed to groups.

"Allegheny County isn't like the rest of the state," he added. "It's slow to go into recession and slower to get out. This is going to be no short-term event."

RAD gets its money from the sales tax and Mr. Donahoe announced that recent state tax revenues have dropped sharply.

"The rate of decline to date for the state sales tax fund far exceeds anything the state has seen before," he said.

Ms. Sarbaugh cautioned that "we haven't seen the full impact yet," echoing other participant's gloomy projections for "a not so good 2009, a not good at all 2010, and probably in 2011, the same thing."

She also reported that the Heinz Endowments lost 20 percent of their investment value with the stock market collapse, forcing it to make a 15 percent arts budget cut this year

"Yes, our budget has been cut, but we will continue arts programming. We are committed to preserving existing programs and grants."

Both Messrs. Reed and Williams concurred with the gloomy picture, with the latter pointing out that several small groups were forced to refund their grants when they failed to obtain matching ones from the private sector.

In a positive vein, Mr. Swain reported that most arts groups have resisted layoffs so far.

The groups are telling us "we're going to do all we can to keep our people in place," Mr. Swain added.