Hi Slacktivist--
For what it's worth, I got my BA at a CSU and now have funded offers at a variety of schools, one which is in the top 25. BUT, I had a 4.0 GPA and still needed to do an MA before I was admitted (I had no luck coming from a BA the first round of apps). The CSU card is a difficult one to overcome, but I ended up getting my MA on scholarship also through the CSUs, showed that I could cut it in grad classes, improved my GREs, and then was happy with the admissions results.
So, my advice would be to make sure you apply to some back-up MAs. You don't have to go to some fancy, expensive school. Stay at the CSUs if you want. You'll just need to work really hard, pull a near-perfect GPA, take econ courses in the MA (I took several), and show you can cut it in the grad. environment. And solid, glowing rec letters really do matter, even if they're from profs that nobody has heard of...
Good luck!