These programs are pretty common and have been around a while, at least in Florida. (Don't know anything about current funding though, but don't see that this is an extraordinary expense for the state.) There are potential downsides to this program however. If you graduate high school with an AA degree, you will then be applying to college as a transfer student, not a freshman. On average there are way fewer spots for transfer students than for incoming freshman in most schools. Additionally, transfer students don't have the same availability to the lucrative financial aid packages as do freshman. Issues to consider. Probably not the way you want to go if you are loooking at the very selective colleges.
One benefit to Florida's program is that a student who succesfully completes an A.A. degree at a Florida community college is guaranteed admittance to a Florida public university. This doesn't automatically mean he or she will get into University of Florida, but there are about 12-14 public universities in the state, so he/she will get in somewhere.
In addition, the Florida Bright Futures Program pays for about 75% of the tuition for many public and private colleges (75% of the public tuition rate) in Florida for students who maintain a 3.5 GPA, with a few other caveats.
http://www.floridastudentfinancialaid.org/SSFAD/bf/(Recent funding cuts are supposed to be changing the rate of 100% that is listed on the website)
Here's another link just for bright futures:
http://www.floridastudentfinancialaid.org/SSFAD/factsheets/BF.htm