CA is broke because of an electorate that is dumb enough to continue electing people like Barbara Boxer, Maxine Waters, Gil Cedillo, etc. CA is broke because the feds refuse to control the border and continue to let the state be overrun by illegals. CA is broke because the feds won't pay the carrying costs of all the illegals who are causing parts of the state's infrastructure to collapse. CA is broke because too many of the people who live here bought into the idea that things would always be good and there would be no limit to the amount they could spend. CA is broke because of the nutball greenies who indirectly control too much of the state's economy. The reasons are endless. The OP's story has way too much truth in it.
