This is a myth. Due to various propositions restricting taxes, the California state government experiences significant booms and busts. When the busts do happen, the deficits are negligible relative to the size of California's $2.5T economy - the 7th largest in the world.

Sources: http://www.washingtontimes.com/news/2016/nov/12/taxing-rich-... https://www.bloomberg.com/news/articles/2015-01-16/brown-s-c...

California's government has had no trouble keeping the state running, even with the active harm done by a the net federal extraction of wealth from the state, since the supermajority budget requirement which prevented effective governance was removed.