LOS ANGELES (AP) - Californians have more confidence in California's government and economy three months after recalling Gray Davis and replacing him with Gov. Arnold Schwarzenegger, a new poll found.

But more than half think the state is on the wrong track, an improvement from about 75 percent in August, according to the Los Angeles Times poll released Thursday.

About a third said things generally are moving in the right direction, compared to just 14 percent last fall.

More than half of those polled felt California's economy is in poor shape. But despite the mounting financial woes, 42 percent said they believe the economy is doing well, up from 28 percent in August.

The telephone survey of 1,936 Californians, including 1,521 registered voters, was conducted from Feb. 18 to 22. Of the registered voters, 1,005 were considered likely to vote in the March 2 primary. The poll has a sampling margin of error of plus or minus 2 percentage points overall, and 3 points for registered voters and likely primary voters.

Schwarzenegger was elected in October to replace Davis, a Democrat.

The Times poll found Schwarzenegger has a healthy 65 percent approval rating among registered voters. Davis' approval rating was 67 percent at the height of his popularity in February 2000.

Only 19 percent disapproved of Schwarzenegger's performance, and 39 percent said they have more confidence in the way the government is run.

The governor has been touting Proposition 57, which would authorize $15 billion in borrowing to offset the budget deficit, and Proposition 58, which restricts future borrowing, requires balanced budgets and a reserve fund. Both measures on the March ballot must pass for either to be implemented.

Among likely voters, 51 to 34 percent said they would be likely to vote for Proposition 57 if the election was held today. Fifty-eight percent approved of Proposition 58, and 23 percent disapproved.