One of the biggest single causes has been allowing public unions to get involved in politics. That put them basically at both sides of the bargaining table. When you have termed out legislators, they couldn't care less what happens after they are gone. Now most cities have two work forces one working, one retired.
Second is over regulation and a hostile business climate incentivizing companies to leave. The state makes no overtures for them to say. We recently lost Aerojet General. The state's reaction, "meh".
Third is the UC system is very expensive and supported by taxes and student loans, but students get educated here then leave for jobs.
Fourth is the excessive cost of social programs. Illegal aliens have the same right to work as an able bodied citizen, and are often better employees because they will work nights, weekend, on the books, off the books, just f'ing pay me. Then they send millions of dollars back to Mexico where it bypasses the state economy so it acts like a tax - it may as well be pulled out of the economy and burned.
Fifth Cost of housing is two pronged, One is the excessive fees to build a house tacked onto the purchase price, second is the difficulty to get tracts of land approved for housing where the businesses are. San Francisco is hugely expensive, because the city fathers have choked off any redevelopment that may increase availability. As soon as you leave SF you find rolling hills suitable for building but the state will not allow that land to be used for housing.
Sixth crime and drugs. The criminals are incarcerated for appx 1/3 of their sentence, then cut loose on parole. 1/3 of those vanish off the books into gangs.
California is running the biggest Ponzi game in town. Budgets are raided by taking the money, and replacing it with state bonds you can't cash without making an application to do so.
