What’s going to happen? They are on their own, in terms of any federal funding, as far as I’m concerned.
I always ask people to imagine - simply what if the US currency was completely gold and silver coins?
Imagine then if California had to collect its taxes in gold and silver, borrow money in gold and silver, pay interest rates on gold and silver held by others, and had to pay gold and silver for its bills?
What would the California nanny-state look like?