Because California public schools are, on average, the worst in the country, families will flee these failing schools in large numbers. Reduced student populations will undoubtedly lead to reductions in teaching and support staff. These job losses in the public sector will also undoubtedly be offset by job opportunities in the private sector. Unquestionably, under-performing teachers will have a tough time securing employment in the private productive educational sector. This is a good thing. One of the many reasons that public schools are failing is because of their medieval civil service and tenure system.
The demand for quality teachers will increase due to the increase of demand. Expect teacher incomes to increase. We have seen this in states that have instituted school choice.