STRUGGLING TO SURVIVE SOCIAL WORK AGENCIES WORKING THROUGH STATE BUDGET CUTS, LAYOFFS.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - Kathie Mathis, executive director of the Santa Clarita Valley Domestic Violence Shelter, is prepared to do whatever it takes to weather the state budget crisis.

``If it means standing on a freeway off-ramp with a paper cup begging for change, that's what I'll do,'' Mathis said, laughing ruefully in her office at the Newhall shelter.

Things won't get that bad, even if payments from the state to the shelter - and nonprofit service organizations throughout the state - dry up as expected on Tuesday because of the $38 billion deficit facing California, Mathis adds.

``I hope, any way,'' she said.

For the second year in a row, the shelter and organizations in Santa Clarita may have to borrow, fire employees and cut back services to make it through the summer without funding from the state.

``We'll have to be a little more creative to stretch our dollars further,'' Mathis said.

The shelter helps more than 2,000 women and children each year who have been abused, and strives through counseling and other services to break the cycle of domestic violence. About half of its annual budget of $500,000 comes from the state and Los Angeles County.

Earlier this year, Mathis was forced to lay off seven employees because of a steep reduction in donations to the shelter.

``The economy really took a nose dive and donations went south,'' Mathis said. ``It was really painful.''

However, Mathis hasn't yet had to curtail the services provided by the shelter because most of the laid-off staff members have returned as volunteers, she said.

``Once again, we've been able to manage,'' Mathis said. ``It'll take more than this to shut us down.''

In hopes of shielding the shelter from the state's annual budget woes, Mathis has been working to increase the agency's foundation base by applying for dozens of grants.

``I'm hoping by next year to have a system in place to cope with the pattern of crisis after crisis at the state level,'' Mathis said.

Gerry Howard, executive director of Pleasantview Industries, which helps place mentally disabled adults in jobs, shares Mathis' frustration with the state Legislature's inability to reach a deal and pass a budget.

``It is very difficult to continue providing high-quality services under these circumstances,'' Howard said, adding that the agency will have to borrow to make it through the stalemate, as it did last year.

Howard also expects to have to cope with a 15 percent cut to Pleasantview's $350,000 budget - although the organization's costs, especially for workers' compensation insurance, are skyrocketing.

``It seems to be a yearly thing, but we're more concerned this year because of the extent of the deficit,'' Howard said. ``You think about it, and your head starts spinning.''

Heather MacDonald, [phone]

heather.macdonald(at)dailynews.com