The easy way out of fiscal crisis for California has always been a federal bailout. Why should the state take on more debt it can't afford when the federal government is doing so on such a massive scale? A long string of calls has sounded for a federal bailout (like here and here) even though it is not a very popular idea nationwide.
A federal bailout would only feed the state's spending addiction, while at the same time ensuring that we need federal money in coming years--the imbalances will remain. Of course Congress and the Administration will attach strings to those funds, meaning more state policy will be set by D.C., further divorcing us CA taxpayers from control of our state. It's a textbook way to make our state government less responsive and responsible.
Better we face the music. This years revenue will support spending levels similar to those from just a few years ago. It's not like we have to go back to the middle ages here folks. All we have to do is reign in our runaway spending growth back to some modest level. Heck, we should be cutting back much more than that, but baby steps, baby steps.
And we have off-the-shelf plans for doing so. Reason California Citizen's Budget lays out how to cut spending without reducing our quality of life. And the California Performance Review is a blueprint for a complete overhaul of the state government to improve services and live within our means.
Time to stop worrying and just do it!