A lot of that is because of the ridiculous propositions that keep getting voted on, especially a few years back. We have a representative form of government for a reason.
There are several reasons that California has such budget problems, and Picaroon has pointed out one of them. Instead of being able to shift around funds where they are needed most there are several things that have to be funded because the voters have decided that they must, not a very efficient way to run government. Another very big reason California is having trouble is that the legislature also requires a 2/3 majority to pass the budget, which hobbles many of the compromises necessary to pass a budget on time and gives small groups or individual members much more power than they do in the 47 states that require only a majority to pass a budget. The legislature is further impeded by the gerrymandered state legislative districts that ensures not much changes.
While California is certainly a good example of severe budget troubles it is only one of many states facing them. Florida, Nevada and Arizona also are facing pretty large budget gaps this year too, among many others. So California is not too terribly unique.
Oh yeah, lay off the bold, you ain't senior or crotchety enough to have earned it yet. And it is annoying.