Can California Declare Bankruptcy?

Interestingly, California's debt is seen by investors as riskier than Kazakhstan's, according to Bloomberg News. http://www.huffingtonpost.com/2010/03/01/californias-debt-no...

While this is a competent technical analysis of the situation, I wonder what will happen if California just stops paying it's debts. Just because it's happened before, doesn't mean it won't happen.