Maybe so. New York’s budget, just passed by the state legislature, contains $50 million for the development of three more law schools in the state. Story here.
If there is a demand for more lawyers, the private sector can and will expand, either by starting up new schools (as has been done recently in Charlotte), expanding existing ones, or both. There isn’t any need for government to spend money to expand the number of law schools. My guess is that this is simply pork for powerful legislators.