Unofficially yes, officially no. There are one or two states that have been in default since the end of reconstruction. CA could go into default that way. It might also subdivide into several states to make takings clause law suits more complex. Then there is a corrupt local government act that can be used against state and local officials. However CA is in better shape than NJ, IL and NY. Also the capital markets of NY and IL are of greater global importance than CA. So, I suspect that CA has highest value to the rest of the nation as a really good example of what happens when leftists are in control. Letting CA screw itself and tacking on a sequester of federal funds would be a great way of putting the boot in at low cost.