If it weren't for the latest tech bubble keeping them afloat, California would be completely screwed.
* High state income taxes, and overall it's one of the highest taxed states in the country.
* Over $1.3 TRILLION in government debt, much in underfunded public employee union pension obligations.
* A regulatory and legal climate that stifles growth and drives businesses out of the state to lower tax, lower regulation, lower cost states like Texas.
* Schools that are some of the worst in the nation.
* Some of the worst roads in the nation, despite having some of the highest gas taxes in the nation.
* Widening income inequality, driven by coastal elites enacting policies that make it increasingly difficult for the poor and middle class to earn a living in California.
San Francisco is an extreme example of the case, since their land use regulations are even worse than the rest of California, and their rent control policies make it so hard to evict tenants that building owners choose to let properties remain vacant because it's all but impossible to kick a tenant out if you want to sell the property.
People can't afford to live in San Francisco because the city and state governments have made the decisions that make it impossible for them to live there.