http://reason.com/archives/2005/12/01/the-father-of-modern-school-re
Essentially he suggested some time ago that universal vouchers should be given out to everyone. Parents can decide what kind of school they want to spend there voucher at. They may have to add more money out of their own pocket if they believe a particular private school is worth the benefit or spend the voucher at a government (Public) school with no out of pocket added. The idea is that it would promote more competition in educational offerings by giving parents more choices. Competition would weed out the failed approaches and reward the successful ones. I like this idea. It doesn't directly address the problems related to centralized control of schools but it may address it indirectly through competition.
