The debate is growing over whether California is sinking fast or holding relatively steady. Many of the arguments are based on comparisons of California to the other states.
It's a complicated debate, and really pivots on the question of whether the state can do very much to improve its economic or business climate or not.
The two best arguments I've read for each side of the debate are:
-Economist Bill Watkins' piece via Fox&Hounds Daily that says, economically, the sky really is falling.
The harder question: what can and should Californians do about all of this? PropZero has offered a variety of ideas throughout the year. And the legislature has filed its own slate of ideas, catalogued by the Sacramento Bee here.