Here's an explanation:
Because Canada prefers many more smaller companies, that actually employ people, instead of few billion dollar tech darlings with a sub par personel and even less taxes paid?
How about: why California is bankrupt, as a state, and with large swaths of the population in utter poverty, despite having the worlds largest tech companies?
I refer you to historical growth of California revenues http://www.dof.ca.gov/budgeting/budget_faqs/information/docu... It's boom-driven, so you get revenue shortfalls during bust years, but on the aggregate the revenues are growing - the $97 billion of revenues in 2013-2014 budget years is still higher than 5 or 10 or 15 years ago.
Perhaps if your revenue is consistently growing, and you still cannot run a balanced budget, the problem might be on the spending side?
I don't know why that obvious contradiction was never tackled. I would like to think it's because the Hollywood execs of SoCal and the ex-hippie/Silicon Valley combo of NorCal are so geographically far apart that they don't talk, but that's too simplistic, I'm sure.
I've heard prisons and state employee benefits are superb, but have had no chance to verify either claim.