There is this large contingent of Californians, especially along the coast, who are hellbent on preserving an imagined 1950’s California where the population was much smaller. While they’re not able to stop job growth in the major metro areas, they are able to offload housing to far-flung places, and they are able to block or at least delay infrastructure projects that help serve this increased population. This is starting to reach severe levels. Housing is very expensive, homelessness abounds, the prices for anything sensitive to rents and labor are sky-high (have you been to a restaurant lately?), and California seems to have a hard time maintaining and expanding its infrastructure to meet a population of 40 million.
“If you build it, they will come; therefore, if you don’t build it, they won’t come” is the thinking of many influential Californians when it comes to housing and infrastructure. But, lo and behold, the people kept coming due to the job market, and California wasn’t ready for them. We’re now dealing with the effects of roughly 50 years of such thinking, and it’s about time California changes its mentality before it kills the goose that laid the golden eggs that made California so prosperous.
Building new reservoirs doesn't help when the problem is inflow, not storage. (Desalination, OTOH, can help, and is being actively pursued.)
> How can a state with the wealth/income of one of the top 10 countries in the world be managed so incompetently?
To the extent this isn’t just a misapprehension actively fueled by political propaganda, largely Constitutional fallout fron 1970s tax revolt politics. (The supermajority threshold to raise any individual tax, even if it is a net tax cut, for instance makes it practically impossible to realign the tax system; until recently repealed, the similar requirement to pass an annual budget had even bigger effects on governability.)