> California just kept adding taxes everywhere else to make up the difference and still had an annual deficit most of the 13 years I lived there.

The state taxes were added to partially backfill the lost local taxes. Prop 13 was a major contribution to moving control from local governments (which it kneecapped fiscally) to the State (which it also kneecapped, because of the supermajority requirement to raisd any tax, but not as badly.)