This a brief video from John Taylor. He is a economics professor at Stanford University. This video is a excerpt from a longer interview (the link is given). He lists 3 things that California needs to do to help it's recovery from this recession and limit the effects of future recessions.
1. Limit the growth of expenditures. He suggests, "Population growth plus inflation."
2. Put in some tax reforms that prevent the ups and downs in revenues to be so great.
3. Education, K12 is slipping. He mentions a setting up a program to encourage more teachers and their accountability.
According to the BEA California's economy in 2008 was 1,846 million (current dollars). It also reports the U.S.'s at 14,165 million. This makes California's economy 13.03% in 2008. I feel that if Califonia was able to limit the effects of a recession then that in turn would limit the overall affect on national GDP.