Original Article references here:
http://www.nytimes.com/2013/05/26/us/californias-new-problem-too-much-money.html?pagewanted=all
TITLE: California Faces a New Quandary, Too Much Money
I guess they could pay back the $10 billion California borrowed from the federal government to keep unemployment insurance flowing to jobless workers after the Unemployment Insurance Fund ran out of money a couple of years ago.
Or they could start paying down the $550 billion to $800 billion in unfunded public employee pension obligations.