Adam Nagourney, writing for The New York Times, examined California's recovering economy.  Compared to the rest of the nation, the Golden State experienced one of the longest and harshest downturns, spurred on by widespread foreclosures and a ballooning unemployment rate that surged to over 12.4% in mid-2010.  But by October, unemployment had dropped to 10.1% - high for most states, but a marked improvement for California.  In fact, the month-to-month drop from August to September (10.6% to 10.2%) was the state's largest decrease in the 36 years since it began tabulating unemployment statistics.  The housing market is recovering as well.  Home sales are up 25% from a year ago, and houses are staying on the market for a shorter period of time and selling for higher prices. The California Legislative Analyst's Office projects the state to post a $1.9 billion deficit next year, and perhaps even a $1 billion surplus.  California's deficit was at one point over $25 billion – bigger than many states' budgets.  With that said, a significant geographical divide characterizes the recovery.  Coastal areas are posting much lower unemployment rates and possess healthier housing markets than the inland areas.  Additionally, by some measures California still has the worst poverty rate.  The state has rebounded significantly, but still has considerable work left to be done.