Say the government subsidizes some part of the ag industry and say, 6 companies to the tune of $1 billion. Those subidized entities then produce and sell $15 billion in goods, services and produce, which is taxed $2 billion.
I don't know what the figures are, but you see what I'm saying. In other words, it looks like California is shelling out a bundle of money more than federal dollars they're taking in, but it comes from and owes to that original federal money, and wouldn't otherwise be possible.