Just as Condi is suggesting, give parents vouchers to be used to educate their kids in schools that produce.
What is your solution, give teachers a raise and more time off?
Better yet get coercive government out of it entirely. When they "give" a voucher, that is a misnomer, since they don't own the money, they don't own the right and they shouldn't own other peoples children.
Free market competition will reduce education costs and improve the product. Any system that purports to be doing a good job should not have to rely on ransom to ensure payment.