Black and Blue: Students win in CSUMB’s plans to tackle looming budget cuts. For university spokesman Scott Faust, academics will always come first.

Black and Blue: Students win in CSUMB’s plans to tackle looming budget cuts. For university spokesman Scott Faust, academics will always come first. Nic Coury

How Now, J. Brown?

Governor-elect warns of even deeper cuts, locals brace for impact.

During a Dec. 14 budget forum at UCLA, Gov.-elect Jerry Brown predicted dark days ahead for California’s economy. But the question remains: How can it get any worse?

With ominous yet vague warnings like “fasten your seat belt, because it’s going to be a rough ride” and “I don’t know if you’ll be cheering after the budget comes out,” (but no numbers yet to support them), Californians are left scratching their heads.

Establishing a 60-day timetable to complete the budget, Brown has local agencies preparing for the unknown impact the best way they know how: by crossing their fingers.

“Until we see what Brown’s proposing, there’s nothing we can do,” says Fred Meurer, City Manager of Monterey. “We just have to wait and see what happens.”

As the Legislature crawls out of a potential $28.1 billion deficit, there’s no telling which agencies will come out black and blue. But if history repeats itself, education and city redevelopment are in for a world of pain.

And CSUMB spokesman Scott Faust says the school isn’t taking any chances. “We don’t have any idea what the cuts will be, but I think everyone recognizes that 2011-2012 is going to be a difficult year,” he says.

Regardless of the budget numbers, Faust assures that academics will not be compromised. “We’re advocating the best we can for our students,” he says. “Whatever happens, we’re really going to focus on preserving student support services and instruction.”

While CSUMB has made up some ground since first being blindsided by the recession, according to Faust the CSU system as a whole is currently at a 2004-2005 level of general funds support. The budget at CSUMB alone is $48.5 million. As a result, the need to protect their limited resources is greater now than ever before.

“Once we know the budget, we can go from there,” he says. “For now, we’re hoping for the best, but bracing for less.”

Gov. Arnold Schwarzenegger signed the state budget on Oct. 11, and it’s one that the California State Association of Counties called “a very sketchy plan.” Insiders say the state could require more cuts or borrowing later in the fiscal year.

In Salinas, Don Reynolds of the city’s Redevelopment Agency fears the worst still looms.

The November passage of Proposition 22, which restricts state authority to borrow or take property taxes, gas taxes and vehicle license fees from the local sector to cover gaps in other programs, may have the agency complacent at the moment, but State Treasurer Bill Lockyer has warned that due to the current economic situation, their safety net may be short-lived.

“Economic development and redevelopment are combined in Salinas,” says Reynolds. “Our project area is very old, but it has the potential to bring jobs to the community.”

The agency, which has put $10 million towards redeveloping two miles of Market Street and set aside $800,000 for low-income housing, fears the impact the imminent budget cuts could have on their ability to repay.

“It’s been really tough – right now we’re at zero because of the last two years of reductions,” says Reynolds. “We’re desperately waiting for the return of these funds.”

However Brown plans to resolve the fiscal crisis, for Reynolds, one thing is for certain: “It’s gloomy.”

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