I think it's a false "gift". Room and board make up more than half of the annual college costs for a state school. Some students may be able to live at home, but if they can't, they're still on the hook for close to $20k a year. Some bargain! Not to mention that this kicks in after other things, such as Pell grants, are added, so it's still full freight for that room and board. I also don't think it'll only cost $10pp in extra taxes--these things always go over budget, always.
While I understand the reasoning behind requiring the student to stay in-state after graduation, it's no bargain for the student if they can't find a good job. It might be fine if they want to be a finance whiz or work in a hospital or something, but vast swaths of NY are economic wastelands. We lived upstate for 20 years (Adirondack region)--let me tell you, the biggest employers were the state--either as state workers in Albany, or the correctional facilities. Certainly not what most college grads aspire to, and not a sustainable job market. My Dh has an MSME, when he lost a job, he had a heck of a time finding more employment in the area--say, within an hour's drive of our house. There just aren't opportunities. That's why we were part of the out-migration from the state.
If they really want to attract people and business, they need to lower taxes and remove the regulatory burdens that keep business out. Stop killing energy sources (two nuclear plants closing, fracking banned--how do these things help the dying cities upstate?). Upstate has been dying for decades, but the big money (and votes) are in the Manhattan region.