My Godfather moved from Pasadena, California to Houston a little over a decade ago. He had a highly successful maschine shop in LA (lots of government contracts and whatnot) and moved operations to TX. He immediately realized a dramatic increase in his family's quality of life, along with a HUGE increase in profits.
No income taxes, lower excise/sales taxes, cheap government/DMV fees, dirt cheap housing costs, sane utility bills and a huge conservative population can outweigh virtually all the negatives.
Two weeks ago I cut a $560 cheque for tags on my car, that would have set me back $60.75 + $14.50 for an annual inspection in Texas. The difference more than pays for a ski trip to Utah/Colorado where the snow is awesome
The only hope for California is if it's split into two seperate states.