SEASIDE -- President Peter Smith vowed Thursday that California State University, Monterey Bay, will focus on its own strength and purpose as it enters its 10th year, in spite of the state's dire financial outlook.

"Because of who we are and why we are here, we will not be diverted from our chosen path or otherwise dominated by forces lying beyond our control," Smith told an audience of about 400 faculty, staff members and students in CSUMB's World Theater.

"We stick to our agenda, focusing on what we can achieve with what we have, never forfeiting our control of our own space, time and responsibilities."

Barring further state budget cuts, Smith said, the university can stave off employee layoffs -- in part thanks to income from a new plan he revealed to build for-sale and rental housing on campus for faculty and staff.

Among significant milestones he noted in his 35-minute address:

New facilities, including the Chapman Science Academic Center that opened in August, a new fully renovated residence hall, a new swimming pool and new student suites and apartments under construction.

A new $64 million library is planned for completion in 2007.

Numerous awards and honors for faculty, staff and students, community partnerships and job success for an increasing number of CSUMB graduates.

Accreditation, announced in July, by the Western Association of Schools and Colleges, which he said hailed the university's vision, service learning and outcomes-based education.
But Smith also expressed deep concern about California's future, saying, "We teeter, as a state, on the brink of fiscal and constitutional disaster."

The stakes are huge for California voters to support two propositions on the March 2 ballot, he said: Proposition 57, a $15 billion bond to refinance the state's deficit, and Proposition 55, a school-repair-construction proposal that would provide $18.5 million to upgrade utility lines across the CSUMB campus.

Smith warned that it would be disastrous if the Legislature and Gov. Arnold Schwarzenegger chose to further seek cuts from California's public system of higher education.

"There's talk of 'sacred cows' that need to be cut in state government," he said. "Ours is not a sacred cow! Ours is a sacred cause that lies at the heart of the American promise. And without it California will fail as an economy and as a society."

While ongoing construction and other plans depend in part on student enrollment, CSUMB this year had to accept 500 fewer students because of reductions, Smith said after his speech. The loss of the students resulted in a $5 million loss for the school.

"The wizards who say we can do that -- cut spending and stay prosperous -- must also believe in human flight without the airplane," Smith told his audience, "because that's the type of fantasy they are advocating."

He also outlined cost-cutting measures at the university -- such as saving up to $95,000 a year on a new online payment systemand reducing catalog printing by $10,000. And he said efforts to obtain new grants and attract gifts from individuals and institutions are critical now and in the future.

Smith put special emphasis on an ambitious plan to build on-campus workforce housing that faculty and staff could afford to buy and rent. A phased-in plan includes construction within CSUMB's East Campus Housing area, a new development between Schoonover and Abrams roads and, finally, construction of an entirely new North Campus neighborhood adjacent to the Marina University Villages project.

Work could begin this fiscal year, Smith said, and initial revenue could help make up the difference between money the state gives CSUMB and the funding required by its academic model.

At the onset of his address, about 15 students left the auditorium. They were protesting CSUMB's decision to phase out single-student housing in the campus' Frederick Park area and move them to more expensive units in the new North Quad Apartments and Suites.

"They are forcing out the single-status students so only families will be able to live in the area," said student Yuri Beckelman. "For a lot students, this is not an option for education."

While protestors contend the rent would be more than $300 more a month, university spokeswoman Holly White provided a figure indicating an increase of $80 for a double-occupancy room.