At the same time this $14 billion water project to drain the Sacramento Delta sending more water southward is in the works:
http://www.utsandiego.com/news/2012/jul/25/california-embarks-on-massive-water-project/
That's the problem with these states so flush with money they don't know what to do with it. At least it is not like the state of Kalifornia that is heading towards bankruptcy...with a pension system $1 trillion underfunded.
Out of 36 million people, twentyfive percent of Kalifornia's budget is paid for by 144,000 residents. Another way of looking at that number is 144,000 residents pay 50% of the state's income taxes.
Over 20 years, from 1984 to 2004, Kalifornia's poplulation increased by 10 million people (from 24 to 36 million). During that period, only 100,000, or so, were added to the tax roles.