An economic forecast says state government reforms and a revived housing market along the coast could put California's economy on a strong footing when it finishes its slog through a slow-building recovery.
The quarterly Anderson Forecast from the University of California, Los Angeles, released Tuesday says November's ballot measure allowing budgets to be passed with a simple majority could make the state more attractive to businesses and improve its borrowing costs.
Pent-up demand among home buyers could also explode in the state's coastal communities where inventory has been limited.
But the report says the state still will be in for some pain before it realizes those gains.
Employment is forecast to grow at a rate of 1.6 percent in 2011, keeping joblessness at 11.4 percent through the year.
Copyright 2010 The Associated Press.