While it's nice to talk about what should be done, the simple fact is that there isn't anything can be done. So much of the basic financial problems are untouchable, we have massive bond issues that have driven us into bankruptcy, we have ridiculous union contracts that are completely untouchable, we have an initiative process that lets a simple majority vote in massive new spending that cannot be undone by law. etc. While a lot of those ideas would be great once we get out from under the huge debt we're currently in, unless we can do that, they're all pointless. The damage is already done and cannot easily be undone. We need a bankruptcy of some sort that can free us from those obligations, even for a little while, so we can get the rest of our financial house in order.
The best thing we can do, to be honest, is to get serious redistricting done so that every district is in contention and the legislature can stop appealing to a tiny minority of voters on a minuscule number of issues because they know that their districts are entirely safe. Even now, when we're $26 billion in the hole, Democratic legislators want to spend another $30 billion frivilously and tax the hell out of voters to pay for it.
It's insane, but I don't think there's the will in the state to stop it. It's been a disaster for far too long. A real fix would require a Constitutional Convention to fix our inherently broken State Constitution and get rid of the ridiculous Initiative process. That won't happen either.