PowerShares Insured California Muni Bond (NYSEArca: PWZ ) SPDR Barclays Capital California Muni Bond (NYSEArca: CXA ) iShares S&P California Municipal Bond (NYSEArca: CMF ) Max Chen contributed to this article. Despite the fact that after being adjusted for inflation and population growth, it's smaller than ever, California still faces a budget deficit of around $17.9 billion in the current and coming fiscal years. The governor is also castigating the over-generous state employee pensions, which is costing California more than $6 billion this year, or the equivalent of the programs being eliminated.