Hell yeah it is. My daughter passed on UCSB (not sure why), but got in to UC-Santa Cruz and UC-Davis, and actually got wait-listed at UCLA (sort of surprising because that was one of her "reach" schools. and knowing admissions criteria have gotten tougher she expected an outright denial). She also worked her ass off, was inside the top 5% had a strong SAT, but the UC schools didn't give her a dime, and I've heard plenty of other Texas parents say the same thing about their kiddos' UC application experiences.
Say what you want about California, but the state university system takes good care of their own, and I think you need to be awesome at sports or find a cure for cancer if you're a nonresident looking for a tuition break.
If my girl really wanted to go to one of the California schools, I'm sure I would've found a way to make it work. But I'm also glad she opted for Oregon, where they gave her a pretty generous scholarship. And she loves it there.
Good luck to your daughter. Whatever path she choses, it's an exciting time for a parent.