Even the Steelers aren't immune to the effects of the recession.

Facing a massive budget deficit this year, the state has cut a proposed $4 million grant for the team's planned entertainment complex on the North Shore next to Heinz Field to $2.5 million.

In an e-mail, Barry Ford, president of development for Continental Real Estate Cos. in Pittsburgh, which is working with the Steelers on the project, blamed the reduction on the economy.

The team and Continental had sought the $4 million capital grant as part of the funding for the $12 million year-round entertainment complex, which is to feature concerts and other events outside during warmer months and inside during the winter. It would be patterned after the Promowest Pavilion in Columbus.

Frank Kass, Continental's chairman, said he did not think the funding cut would halt the project, and Mr. Ford gave the same indications.

"We continue to work diligently on the project and should have more to report shortly," he wrote in an e-mail. "Everyone expects the project is going to move forward basically as planned."

As for the impact the cut would have, Mr. Ford said officials were still working through plans and hadn't finalized design options so he couldn't share any specifics.

State Rep. Jake Wheatley, whose district includes the site for the complex, called the cut in funding an "unfortunate thing."

"That was a crucial part of their financing plan," he said. "I do know the Steelers were hoping and figuring on $4 million from the state ... as part of their overall financing."

Chuck Ardo, spokesman for Gov. Ed Rendell, would not say whether funding had been cut.

"The governor has not yet made an announcement regarding the project. He will do so in the near future," he said.

Mr. Kass said the Steelers and Continental may go back to the state next year in hopes of securing the additional $1.5 million for the venue. He said last August the grant was needed to make the economics of the development work.