I agree with most of what you have written, but be careful there: if the wrong taxes are increased, that can be a really bad idea, one that will create tremendous backlash.
Currently a large percentage of Californians are looking at leaving the state, simply because they cannot afford the costs -- between health, education, housing and retail prices, it costs up to US$2 MILLION to raise ONE child (from birth to graduation in a decent college) in urban California. A lot of people are already leaving, and if we raise income taxes, for example, there will be many more.
Raising the car registration costs was, on the other hand, a good idea, and Arnold was wrong in killing that. One of the most fundamental problems of California -- one that is horribly expensive for everyone -- is the reliance on cars, and we need to seriously start moving away from that and betting on public transit.
We should not only increase Car Registration costs, we should have a special tax for Car Sales (on top of the Sales Tax), with a system that would be similar to basically every other country out there: low to no tax on smaller, economy cars; progressively higher tax on larger cars. You can base the tax on weight, size or a combination of both.
Businesses would obviously be exempt, since they might actually need the large cars to haul cargo.
You can easily rationalize this tax by pointing out that heavier, bigger cars damage road more and take up more public space.
The money from both increases would have to automatically go into public transit first, road maintenance second.
Cars and Car Sales can be an excellent source of income for the State, with only a very small risk; people will not move to other States just to buy a slightly bigger car. They will complain, but stay -- with a smaller car. Everybody wins.
Now, at the same time, the State Government absolutely needs to work on lowering the cost of living, so that more people -- and, especially, affluent people -- stay and/or come back; but that's a whole thread in itself.