"As technology improves, we should expect higher quality teachers for less cost" --- if and only if we know how to use technology to increase instruction quality. I contend that we have almost no idea about that.
He is right to blame all of California's ills on tax cuts. They and Oregon have had the worst abuses of the proposition system of all the states. Both used to be prosperous with balanced budgets, but had sneaky time-bomb anti-tax measures voted in, which prevented them from raising revenues even as home prices went up (which should increase the amount of tax owed on a property, but didn't) and inflation made existing fixed dollar amounts worth less and less.
The example I know best is Oregon, where a guy named Bill Sizemore (currently indicted for tax evasion) organized and ran a successful campaign for a measure that required a super-majority of registered voters to vote yes in order to pass any tax increase in a non-presidential election year. Thus, not going to the polls counts as a "no" rather than a "I don't care". Another Oregon measure required that the taxed value of a property could rise by no more than 3% per year. Thus, when I owned a house in Oregon, I was only taxed on two thirds of its value (this is slightly pre-bubble, too - now it is much worse!).
Anyhow, lots of this sneaky stuff has led to the states being almost totally broke, and their respective education systems, which were once the best in the nation, are now circling the bowl. Higher ed is holding up better than K-12.