All you have to do is look around San Diego to see how bankrupt it is. I went there a few weeks ago to see a freind was and shocked how streets and sidewalks looked busted up potholes. Huge transformation from my last time there in 1980s..what glorious beautiful city it was... time away really gives perspective. In 20 yrs you may have to go to Tijuana for nice ambiance at this rate.
What on earth are you talking about? The money to fix streets comes overwhelmingly from city taxes, not state ones. If you thought the streets in San Diego were bad, (and they are) it would have very little to do with the budgetary problems of the state of California, it would be budgetary issues of the city of San Diego.
The reason why San Diego specifically has bad roads has to do with an ongoing financial crisis due to a pension fund scandal where a bunch of people were criminally indicted. (although I think they ended up getting off). Again though, that's a local issue.