If I read EconProf’s original post and intent correctly, I think he has the right idea (sorry if I am missing your point).
CA needs to run completely out of money and break the pension funds and unions before it can recover. Most companies (other than local services) are trying to find ways to move revenue generation out of CA, so that the inevitable tax increase will not destroy them. The best scenario is to find a way to live here and not pay huge taxes to CA.
Once the revenue generators are gone and not paying taxes, the only people left will be gov’t employees who pay tax on what the gov’t pays them. That will be the death spiral. Hope it happens as soon as possible. No ex city employee is worth $100k * 20 years = $2M, and many are higher than that.
To avoid any political slant I will point out that I am an Independent, and really don’t like either party. This is strictly an economic issue.
