1. in state tuition is cheap so this plan won't actually cost that much
2. it encourages more people to go to college and thus elevates the overall education and hire-ability of the population
3. with more college educated people in the state, it "should" spur economic growth with small businesses, and maybe more hiring from larger businesses as the talent pool grows
4. by reducing immediate and long term financial burden of college payments, it frees up capital to be spent in other areas. So spending in the state could go up as a result.
5. it creates a larger alumni base for the state schools, which leads to more exposure and more donations down the road.
6. by being out front in this movement, it gives the whole state good exposure to businesses who might want to look at expanding there or hiring from there in the future.