Allow individual UC schools to set their own fees?

It's an interesting idea that's getting batted around the 10-campus University of California system. With budget cuts that already have led to tuition hikes, staff layoffs and cuts in class offerings, why not charge more for prestigious schools like UCLA and Berkeley? State schools outside California have been moving in that direction for years. From the LAT:

UC Berkeley Chancellor Robert J. Birgeneau said he would like the regents to set a midpoint for undergraduate tuition and allow campuses to range up to 25% above or below that. Such a plan would give campuses the flexibility and income they need but maintain a sense of a UC system and provide additional financial aid, he said. "We can't just completely devolve control to each of the campuses," he said in a recent interview. "That would be chaotic."

[CUT]

If different rates were allowed, [UC Santa Cruz Chancellor George R. Blumenthal] predicted that UC Berkeley would raise tuition the full 25% in "a micro second" and others would quickly follow, not wanting to be left behind in money or reputation. "I think once we go down that road, it could mean that some campuses may not be accessible to large segments of California students," he said. Another influential critic is Daniel Simmons, a UC Davis law professor who is chairman of UC's systemwide Academic Senate. Varying fees would result in "separate campuses competing with each other and ultimately that competition would be destructive," Simmons said.