A new poll shows Californians are cautiously optimistic about the future of the state.

According to the Public Policy Institute of California, just over half the state's residents feel that overall, things are going in the right direction.

PPIC's president and CEO Mark Baldassare says voters are still concerned about California's budget, despite talk of a possible surplus.
 
"They want to see us paying down debt, building reserves," says Baldassare.  "The challenge for legislators, with so many deep cuts in so many parts of the budget, is going to be how to manage expectations right now,  and make sure that we're not getting too ahead of ourselves and making commitments to spending that we can't afford to do."

The survey also shows fifty-seven percent of residents believe the governor and legislature will be able to work together and get things done.