And will remain so in Sacramento for some time to come.
Government is city's engine
Rising tide should help law firms, lobbyists and other cottage industries
By Dale Kasler - Bee Staff Writer
Published 12:00 am PST Friday, February 16, 2007
Sacramento's economy will grow more quickly than any other major metropolitan area in California over the next decade, a leading private economist says.
One of the big reasons why may surprise you.
For all of Sacramento's efforts to diversify its economy, the region's old reliable industry -- state government -- will be one of the leading growth engines between now and 2015. After several years of deficits, hiring freezes and downsizing, the state will hire in earnest to keep up with California's exploding population and infrastructure needs, according to the report by Stephen Levy, director of Palo Alto's Center for Continuing Study of the California Economy.
The private sector will be a major part of this, he said. The cottage industries that serve government -- law firms, lobbyists and so on -- will mushroom to keep up with the state's hiring, particularly as California implements billions of dollars in planned infrastructure improvements.
"The state is going to be putting out a ton of money," Levy said in an interview. "State government is the gorilla of the economic base."
