First, let's keep an eye on how things work out in California. It's possible we'll see a large number of these borderline students fail their freshman year of college. Although many students will surely rise to the occasion, others may find courses simply too difficult. It's also going to be interesting to see how the funding works out. Right now, California, like New York, has a large budget surplus.
Nothing's really free, after all.
Taxpayers are footing these tuition bills in one way or another.