For local arts and cultural groups battered by the recession, it might not be a good idea to count on more money from the Allegheny Regional Asset District next year.

It, too, is counting pennies.

Through August, sales tax revenues, the district's chief source of funding, are down 2.1 percent compared with last year. While the district has yet to estimate its total revenue for 2010, it is not expecting a big surge, even if there is an economic recovery.

"A lot of people are saying that the best you can anticipate in the foreseeable future is a leveling off, not an increase. That's probably what we're looking at but we haven't made a projection," RAD Executive Director David Donahoe said.

For the groups that depend on the district for at least part of their funding, that probably means not to expect more next year, even as RAD kicks off budget hearings tomorrow. As PNC economist Stuart Hoffman, tongue in cheek, told the RAD board recently, flat is the new up.

"In light of the financial reality, I don't think it's realistic for anyone to expect substantial increases in their level of support," said Stanley Parker, RAD board treasurer and a member of its allocations committee.

For 2009, the board adopted an $80.3 million budget in which it essentially froze operating support for 90 groups and organizations. It also has been withholding 10 percent of the grants because of falling sales tax revenues, a measure it will revisit next month.

The district funds major assets like the Carnegie Museums, the Pittsburgh Zoo & PPG Aquarium, Phipps Conservatory, the city and county parks, the Carnegie Library of Pittsburgh as well as dozens of other arts and cultural groups.

It also provides $13.4 million each year to pay debt service on PNC Park and Heinz Field.

Despite the difficult times, neither Mr. Parker nor Dusty Elias Kirk, RAD board chairwoman, would flatly rule out increases to arts and cultural organizations next year, saying they would consider each case based on its merits.

"Obviously we're constrained by the sales tax revenue," Mr. Parker said. "It is our goal to distribute to the assets as much money as possible but we also have to be fiscally responsible."

For 2010, funding requests have actually dropped to $86 million from the $99.5 million received for 2009, but that's largely because the district curtailed discretionary capital grants because of concerns about the economy.

The vast majority of the 101 applicants for funding next year have requested increases, although Mr. Donahoe described most as modest. He said the only direction the district gave was that applicants "be reasonable."

"In the end people should ask for what they think they need. We didn't limit it," he said. "I think in general the requests were reasonable. We tried to keep people informed of our situation."

One of the bigger requested increases for next year came from the Pittsburgh Cultural Trust, which is seeking $430,000 more than the $770,000 it received this year. Its annual budget is $55 million.

President and Chief Executive Officer Kevin McMahon said the trust is looking for more from RAD in part because of uncertainty over state funding given the current budget impasse and potential cuts. But at the same time it recognizes that 2010 could a "very, very difficult year" for RAD.

"We are hoping this kind of funding would come through. We know there's only so much to go around so we're trying to be realistic," he said.

Because of funding woes, the trust already has cut its programming budget by 18 percent and was forced to furlough 10 people and leave six vacancies unfilled.

Without the increase in RAD funding, the trust might have to further cut programming, Mr. McMahon said, although it is hoping to avoid more layoffs.

The Pittsburgh Filmmakers is asking for $157,000 more than the $200,000 it received this year from RAD.

"We are not anticipating getting that amount. We're going to likely get about the same that we have in years past," said Dorinda Hughes, director of administration.

The economy has taken its toll on the filmmakers, forcing the group to cut $200,000 from its budget. Employees are paying part of their health care for the first time and a handful of staffers took a 10 percent pay cut, Ms. Hughes said.

"We're watching every single penny," she said.

The Carnegie Library of Pittsburgh is seeking a nearly $1.8 million increase from its $17.6 million allocation this year in an effort to curb an anticipated $3.1 million deficit next year and potential cuts in operating hours and services and perhaps even branch closings, although they are considered a last resort.

Spokeswoman Suzanne Thinnes said officials are hoping RAD will be able to make up for state budget cuts which could reduce library funding by as much as 50 percent.

Mr. Donahoe sympathized with the plight of the local groups. He said the "margins have thinned out significantly" for many nonprofits because of the recession.

"It's remarkable, though, the sort of energy they're putting into trying to preserve what they do with the resources they have. Most of these groups are trying very hard to preserve their mission even if it's with reduced resources," he said.

The RAD board plans to release a preliminary 2010 budget in October and adopt the final version around Dec. 1.