First, California is not the only state giving in state tuition rates to illegals or the children of illegals.
Second, I'm not against giving in-state tuition to the children of non citizens. However, I believe that it should be limited to those or the children of those here legally. If you have been here for 3 years legally with a valid H1b or H2b then I don't see a reason to deny resident tuition rates. However, if that is not the case,or ceases to be the case, they should have to apply for a student visa, and pay international tuition rates...
The cause of the illegal immigration problem lies in our poor border security, and refusal to repatriate illegals and otherwise enforce immigration laws. That being said our INS and border security make it so that actual tourists, with money, no longer want to come to the USA.