California Dream ... up in smoke.

SAN FRANCISCO (Reuters) - California has a reputation as a land of opportunity but residents face such steep costs that even a modest lifestyle is far out of reach for many, a report released on Wednesday said. "For many Californians, just making ends meet is a struggle," the California Budget Project, a liberal advocacy center, said in its report. "Many families live paycheck to paycheck, juggling rent or a mortgage payment with child care, food, and emergencies such as unexpected car repairs." Because of the Golden State's extraordinarily high living costs, even middle-class families must pinch pennies and cut corners to get by, according to the report. Raising a family and maintaining a modest living standard requires incomes much higher than the state's $7.50 an hour minimum wage provides -- and in many cases much more than even a median wage, the report said. In addition to some of the highest home prices in the nation, Californians face high costs from property and income taxes, insurance, home repairs, child care, transportation, food and health care -- each contributing to making the state one of priciest places to live in the United States. The center's report said its gauge for household budgeting included basic expenses and provided for more than a bare-bones existence but allowed little to no money left over for college savings, vacations or emergencies. The center estimated that to support a modest living standard in California, a single adult must earn $28,336 per year and a single-parent family must have an annual income of $59,732. A family with two working parents would need to earn $72,343 annually. Famed cities in the state such as San Francisco and Los Angeles are especially expensive. A minimum wage worker in California earns $15,600 annually.