Its really hard to predict the future of California. The state definitely has to clean up its mess, but it also has a lot going for it.
Remember back in the 70’s and 80’s when NYC was a dump? People at the time thought the city was lost forever. They turned it around. They cleaned up and put out the welcome mat and tourism and business soared.
Sometimes when things look the bleakest, is the time when the turn around begins. I agree with you though, the people are going to have to do some house cleaning, probably reverse prop 13, and reform the welfare system in the state.