Dominique Monroe couldn't believe it.

The 18-year-old freshmen at Laney College in Oakland had just been told that her fees could go up next year. Not only that, she could be joined in her classes by students who would otherwise have gone to a California State University or University of California campus -- but they'd get to attend Laney for free.

"That's ridiculous," said Monroe, who was studying in the Laney quad when she paused for an interview. "If they're going to go to UC, they can afford it -- just like us."

UC base fees are $4,984 this year, nine times higher than the $540 paid by the average full-time community college student.

Others, though, say it isn't so ridiculous at all. Gov. Arnold Schwarzenegger says such a plan would save the state millions and would guarantee college access to a chunk of the approximately 28,000 students who will be locked out of CSU and UC campuses in the fall because ofbudget cuts.

In his budget recommendation for next fiscal year, Schwarzenegger has proposed that CSU and UC redirect 10 percent of their fall freshmen into community colleges.

Those students -- 4,200 from CSU and 3,200 from UC -- would enjoy free tuition at the two-year schools and would benefit from dual admission agreements that would guarantee they'd be able to transfer to a specific UC or CSU campus after completing undergraduate requirements.

The plan would save California $46 million, the governor estimates, because the state pays less to support community college students than it does for UC and CSU students. This year, the state paid $4,100 per community college student, versus $7,200 per CSU student and $14,300 per UC student, according to information from the state Legislative Analyst Office.

"It's not just a cost-saving measure," added H.D. Palmer, deputy director of external affairs for the California Department of Finance. "It's a better utilization of the capacity for higher education in the state. For too long, community colleges have been considered a step-child of higher education. That's not fair. We think this is an opportunity to be able to provide more access and to be able to do it in a cost-effective manner."

The two-year institutions could be the only available public college option for thousands of freshmen next year anyway.

CSU officials announced Jan. 27 that they'll have to turn away 20,000 students in the fall who would otherwise be eligible for admission. CSU Chancellor Charles Reed said the 23-campus system -- anticipating $240 million in state cuts next year -- just won't have the money to serve everyone who wants to attend.

And UC officials have told campuses to trim enrollment by 10 percent, or about 5,000 students, next fall. With the 3,200 students the governor has proposed shifting to community colleges, that means about8,200 eligible students won't have a place at UC next year.

Only students who are offered the dual admission option from CSU or UC would be eligible for free community college tuition.

Joni Finney, vice president of the National Center for Public Policy and Higher Education, said the governor's plan makes educational sense.

She said it preserves the promise of the California Master Plan for Higher Education, the state's 40-year-old bible for higher education that guarantees every student a place in one of the state's public college systems. Policy makers and administrators have warned that the state's fiscal crisis is threatening that guarantee.

"It's a good idea to more fully utilize the community colleges," Finney said, provided that the community colleges can absorb the extra students.

College officials are still trying to determine if they can.

Some officials also doubt students who've been preparing to attend a four-year university would be interested in attending their local community college, even with the lure of free tuition.

The governor said he would give community colleges an additional $125 million next year to accommodate enrollment growth, including growth expected from deferred CSU and UC students.

But California Community Colleges Chancellor Mark Drummond said that money isn't enough to handle all the students the system expects next year anyway, even before the CSU and UC students are factored in.

He praised the governor's suggestion, calling it "a good educational decision and a good opportunity for the state," but he said leaders from the three public college segments are working to figure out the details.

Community college students, meanwhile, are fuming about the proposal.

Kristin Jackson Franklin, student trustee on California Community Colleges Board of Governors, said her peers are getting a raw deal.

Schwarzenegger's budget proposal also calls for raising junior college tuition, called student fees, by 44 percent. The increase, if it's ultimately approved by the Legislature, would take fees from $18 per class unit this year to $26. The average full-time student would pay $780 a year, a $240 increase.

UC and CSU students are also facing fee increases. Schwarzenegger has proposed raising undergraduate fees 10 percent, which would increase UC fees $498 to $5,482 and would take CSU fees to $2,251, a $205 increase. UC and CSU undergraduate fees have jumped 40 percent in the last two years.

Community college fees jumped 64 percent this year, from $11 per unit to $18.

Jackson Franklin said it's unfair that traditional community college students would pay more, yet those who would otherwise go to the more expensive campuses would get a free ride.

"It gets to an equality thing," Jackson Franklin said. "If they're going to go to a CSU or a UC, then they have the money to pay for that. It's commonly believed the community college students are the working poor, working to pay for their own education. If he's going to have tuition waived for UC and CSU students, he needs to also do a certain percentage for community college students."

In fact, community colleges already waive fees for about 38 percent of their roughly 2 million students, the governor said. But that waiver is generally reserved for the most financially needy. The governor's plan would extend free tuition to all deferred CSU and UC students -- regardless of need.

Students say it's also about more than the money.

Chris DerBing, vice president of the Associated Students of Ohlone College in Fremont, fears the incoming students will only increase competition for already scarce class sections.

DerBing said Ohlone this semester is only offering one section of a lower-division biology class students need to qualify for transfer into a four-year university. There's only room for 24 people in the class, he said.

"With the university people coming here, it's going to be a lot harder for people to add (courses)," DerBing said. "If those people end up getting the spots, that's just less for Ohlone students."

Jackson Franklin said community college students are mobilizing to fight the proposals. She said students are planning a rally in Sacramento on March 15 in a replay of a similar event last year, when thousands converged on the capitol to protest cuts and fee increases planned by then-Gov. Gray Davis.

"All the students are hyped up," Jackson Franklin said. "There's a clear and present danger here, and we really need to get our point across that we're a voting society and we have a voice and we're not just going to stand around and take all these cuts."

Palmer, though, said the state's fiscal crisis calls for new solutions.

"Given the situation we've got and given how community colleges can play a more integral role in overall higher education, we think this is an idea well worth pursuing," he said.