I would think that you should do a search on California Tax Free Muni Bond funds. I personally think highly of the American Funds RTCFX, TAFTX, TECFX.
Vanguard offers a CA tax free fund VCADX.
Schwab CA Tx Free SWCAX
One thing to consider about Bonds at the moment is the fact that Municipalities are going to start hurting as Homes go into Foreclosure and less tax revenues come in to support repayment. Jsut a potential risk to consider in your analysis.
