Good for Arnold! It is about time that some politician held a legislature's feet to the fire. SPEND WITHIN YOUR MEANS. You can not have everything you want. The taxpayers are not a limitless source of revenue - even the ones you call "rich".
California has been chasing industry off for decades, even the nominal Hollywood film industry. Every dollar in tax revenue you chase out of the state must be made up by doubling-down your taxes unless you cut your spending. At some point or other you WILL have to reduce the spending - if not now, then later. If you do it later, it will only be more difficult.
PS: Please don't come asking the rest of the country to come bail you out. We are having trouble making our own ends meet with more people trying to take out of the government than are putting in.
*Did you ever wonder what Alfalfa was really singing in the Little Rascals films.