Actually at the time and beyond California received more in federal funding than they paid in taxes. At some point in the early eighties, California got a $1.25 back for every $1.00 they put in, while New York got .75 back for every $1.00 paid.
For for some decades now, however, California has been paying more than what they get back, like New York.
Back in the day, rent in San Francisco on Los Angeles were very very low, and they were practically giving away houses in Venice Beach to those who were willing to fix them up, so cheap they were. SF & LA, etc, weren't havens for Hippies and later Punks because they were rich kids. Nowadays, you even need mucko bucks to afford East LA.