Speaking as a New Yorker, a taxpayer in New York, and a recent student of the NY state university system (as CUNY, changing careers in my 30s), I don’t see this as a terrible idea.
(1) CUNY, at least, is pretty career focused. Most of the people I’ve taken classes with, both grads and undergrads, are focused, hard-working, and intelligent. A lot of older/immigrant students as well. It doesn’t meet the stereotype of a party school nor of being very PC. Just ordinary New Yorkers trying to get a leg up.
(2) CUNY actually used to be tuition-free (provided that you got good grades) until the mid 70s. There’s historical precedent here, and the past experiments hardly ruined the system. They had to start chargine tuition during the economic issues of the 1970s, but it’s no longer 1977.
(3) City/state universities in NY are 80% funded through non-tuition sources anyway. This will increase costs less than one thinks.
A lot of CUNY students I know do not have the luxury of having the so-called “College’ Experience”.
Many are working part-time while juggling their time taking classes in the CUNY schools that do not even have huge campuses like they have in the suburban areas.
These are the ones who would tend to study the non-fluff courses that get them useful jobs after they graduate.