I think if California quit spending a grave flaw in California economics would be revealed. So many jobs have been sent out of state that the private sector has no way to absorb the people that would be unemployed. I think it is the same reason the federal government could not cut spending with a Republican Congress earlier this decade. To many jobs have been moved offshore. Both California and the federal government are masking false economies that require they borrow and spend. We’ll see.
I agree with your theory. It's a house of cards and no one is willing to say the emperor has no clothes. When it all falls down, it's gonna hurt worse.