It’s too damn big:

Because the state is so enormous and occupies some much of the attractive real estate on the West Coast, people have often been reluctant to leave even when its policies are badly flawed. Over the last decade, things got so bad that California finally did start losing large numbers of migrants to other states. But not before the state’s government dug a much deeper hole for itself than would have been likely had California been three or four smaller states, each forced to compete for migrants with the others.

That is the dilemma. It’s geographically such a desirable location that people are willing to put up with awful government.