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From this. I post the link so others can read about their states, how and why they rank.
http://mercatus.org/publication/freedom-50-states-index-personal-and-economic-freedom

California
Contrary to popular perception, California not
only taxes and regulates its economy more than
most other states, it also aggressively interferes in
the personal lives of its citizens. California ranks #48
on economic freedom and #37 on personal freedom.
California simply needs to cut government spending.
The budgetary categories most out of line with the
rest of the country are public safety, natural resources
and environment, and administration. The state actually
does not spend more than average on education
and social services. For a large state, it is also fairly
centralized, with local governments receiving about
half of their revenue in state grants, and almost two
thirds of all state and local tax revenues controlled
by Sacramento. Labor laws are of course extremely
strict; for instance, California is one of only five
states to mandate short-term disability insurance.
Health insurance mandates add about 60 percent to
the cost of premiums in the state. Eminent domain
reform has been cosmetic, and the state’s liability
system almost reaches the abysmal quality of the
Deep South. On personal freedoms, California does
well of course on same-sex partnerships and marijuana,
but it also has the most restrictive gun laws
in the country, a highly restrictive policy regime for
motorists, and smoking bans. Arrests for victimless
crimes are surprisingly high, with 21.6 percent of all
arrests being for victimless crimes, the fifth highest
in the country. Effective homeschooling regulations
are about average, but the state has no statute explicitly
permitting homeschooling. Fortunately, the state
has a reasonable asset forfeiture regime (burden of
proof on government, owner knowledge of criminal
activity required).