CA is baked. If it didn't have beautiful weather and vistas in key locations it would already be a third world nation.
Let's just assume California has a large liberal/left win majority, which it does. The left's answer to most budget deficits is to raise tax. Usually 95/5 Rich to 'all others' since there aren't enough 'Rich' to vote them out of office. Yet the 'rich' pay about 85% of all the taxes in CA. If they keep pushing up the taxes, the 'rich' say, 'screw this, I'm done' and move to Texas, Arizona, and other states with warm climates and MUCH lower tax burdens. Sure, Geffen, Sergei and others are so liberal that if taxes go up, they don't really care, especially since they have enough money for 1000 lifetimes. Although, don't know if you saw, one of the co-founders of facebook just renounced is US citizenship to protect the windfall he's going to get from the Facebook IPO (as a bunch of idiots buy the stock after it goes on the aftermarket)
All that will leave california with is a handful of rich, a large middle class who doesn't want to/can't afford to move due to family, career etc, and a massive lower class, many of which aren't even legal citizens draining the Californian coffers in the form of welfare, educations, 'special needs', emergency room visits, medicare, food stamps, and a million other 'sanctuary state' entitlements. THey are just assuming that Obama is going to come in, in the end, and ask the rest of the 49 states to bail california out via a huge federal government bailout