The most important thing to do when you find you are in a hole is to stop digging. Poor blue California hasn't learned this lesson.
An editorial in the Orange County Register compares the decline of the median household income in CA with that for the country as a whole. Income for the nation declined 5% between 2006-2010; during the same period California declined 9%, almost twice as much. The article adds:
In 2010, 16.3 percent of Californians earned incomes below the poverty level, a 15-year high and higher than the nation’s 15.1 percent rate.