I blame the unions...the firemen, the cops, the teachers, the life guards, etc....all who have bankrupted that state now and for the long foreseeable future.....they knew better...
As a start, I would simply pass a law that in order to collect your full public pension, you must continue to live within the city limits. You move, you automatically take a 50% cut.
Note that the destruction is being accomplished first in the blue-collar cities of California.