I've lived all over: Hawaii, souther California (few different places), central California, Salem Oregon, Fort Collins Colorado, Chicago, Charleston South Carolina, Connecticut, and Seattle.
California is my home... And it will always be my home. Not everyone can live there though. It takes a certain type of person to love California no matter where you live in the state. With it bring so large there's vastly different areas. So Cal, Nor Cal, Central, the Bay Area, and the Central Coast (which is like San Luis Obispo to Carmel) are all different.
I hate living everywhere but So cal and the Bay Area. I've never been truely happier than living in California. Other states just aren't for me. California really is a different place; it's not for everyone. Some don't like the traffic, some don't like the busy city life, etc. Yes, the nicer spots of Cali are expensive, but there's usually a reason: it's awesome! The beautiful part is the wages are usually higher in those areas to.
If not, you can always commute into the city which a lot of people do. It's easy. You can live frugal in Cali no problem. You'll be spending more money on average to maintain the same lifestyle, but with the pay increase (not including the benefits) it should work itself out.
I haven't lived in Cali for 8yrs (due to the Navy) and I'm saving now to come back. No other place makes me feel good. There are mos def downsides to living there though... But what place doesn't?! I'd recommend vacationing a bit down there and see if you like the lifestyle.
Like I said, it's not for everyone but there's truely no place else like it. I vote move :)