If looking at it through the eyes of an in state taxpayer, I would think it far better than some of the auto merit schools approaches.
The big auto merit schools draw kids from out of state, subsidize their education with in state tax revenues only to then have many of these kids move away upon graduation. In practical terms that subsidy could be better spent (from the perspective of a taxpayer) on an in state kid that might not have had the advantages to perform up to NMF standards in 11 grade but would benefit from an instate educational opportunity and might even remain in state post grad and contribute to the local economy.
I would find it particularly disturbing if these subsidies were going to OOS families that had significant financial resources at the expense of those with real need in state.