Here's an interesting article that goes into quite a lot of detail about education spending, and unions. He makes some interesting points about current efforts to curb collective bargaining won't strike at the heart of the matter. At the end of the article, he makes a proposal--one that, were I running, I would make a central issue in my campaign: tax incentives for people who educate their own children. He goes one step further, and proposes tax breaks for people who provide scholarships for families who can't afford to leave the public school system.
Ultimately, I don't believe government should be involved in education at all. It is a conflict of interest, and the government can't do anything efficiently. However, I don't see this changing because it is too sacred a cow for politicians to touch. Too few are afraid to think outside the box in answering the question, "How do we provide the best education for our children?" But the above ideas--tax breaks--would point us in the right direction.