How about California has an unemployment rate that is over 12%, and 33% of employers expect to lay people off in 2010?
What about prisons becomming so over-crowded that California is being forced to release prisoners?
California has become a nightmare of increasing government taking creating higher deficits and higher taxes, which forces productive individuals and companies out of the state, which pushes the government to have higher deficits and higher taxes.
I don't live in either state, but California is a high profile disaster that is becomming well known around the world.
Some states have similar or higher unemployment rates:
South Carolina a heavily republican state has unemployment at 11.6%, Nevada is at 13.3%, Tennesee is at 10.5%, Alabama at 10.7% and a all those except Nevada are heavily republican states with low taxes and less government intervention than California.
Government intervention is only one possible factors out of many, California is one of the biggest hit states because of the real estate market bubble.
The prisoner problem has a lot to do with the fact that California alone is about 10% of the US population plus many millions of illegal immigrants.
Also, even though you say productive individuals are leaving the state, Californian has the 9th highest median household income of any US state, Texas is number 27. A Texan household makes on average 11 thousand less dollars than a Californian one.
Thanks to Blacksaber for the sig!