Americans are Constitutionally entitled to the equal protection of the laws everywhere in America. Cities are not sovereign nations. They don't get to control migration or treat natives preferentially.

While it's nice to govern as locally as possible as a matter of general principle, when cities are hoarding wealth and opportunity and dumping the downside on the larger community, the larger community is right to reconsider the limits of the authority it delegated. Part of what it means to be in the State of California (or the United States of America) is accepting migration from, and influence by, others in that category.