No, California is not the first failed state. California has issues, just as every state has issues, but it is by no means a failed state. California has many positive qualities and is the home to a diverse population. Although California has experienced some failures, it has many prosperous citizens and many positive qualities.
Sure California went through some hard times, but how is it a failed state? Under the new Governor they now have a budget surplus and not a deficit. They have created a lot of limits of emissions and waste that help climate change. They promote alternative energies. They are not a failed state.
I think that while California has it's share of problems it also has it's share of success, the massive size of California and massive population means that there will always be problems and we can be quick to label the entire state as a failure but I think the State is fully functional.
California has the largest state economy in the US. California is also the most populated state in the union. While the state's deficit and debt are high, California also contributes much more money to the federal government that it gets back. In fact, it contributes enough money to the federal government that it would be deficit neutral if it were independent. This is even with the issues brought to California by problematic voting patterns in its populace. Many states are net debtors to the federal government and even then don't have balanced budgets.