That's the thing, they just don't spend the money on coaches. Being a public school, they can't pay for a coach like USC does unless some boosters do it for them. But they figure b/c of the locale and the recruiting hotbed that they can get coaches to take less money.
And to go further, the REAL problem is that they don't pay their assistant coaches well. If you're an asst coach, and you get paid X amount of money to live in Los Angeles, will you take that or will you take way more $$$ to live in a smaller city which costs a whole lot less to live in? And if you work at UCLA, you HAVE to live on the westside due to traffic, and it costs a helluva lot of money to live there (my wife and I rented in Culver City, near Westwood, and when we wanted to buy, we couldn't believe how friggin expensive the westside was. It's unreal). So you're taking less money to live in a place that costs more.
Now, there are obvious perks to working at UCLA, as have been mentioned. But money talks, and if UCLA wants to start winning, they have to pay up. Thy hired Neuheisal on the cheap b/c he was a broken man at the time, and now they're hiring Mora Jr, who hasn't coached in years. I do like the hire though, all things considered. I think he's more built for the college game than the pros, and he's a defensive mind, which is what they need IMO (the Pac 12 is all offensive minded coaches - look at what Petey did at USC).
They also might bring in a stud asst coach/recruiter, a young energetic guy by the name of Adrian Klemm. If they bring him in, they I know they'll be all in, cause the guy will bring in some stud recruits and steal them away from USC during the sanctions...