The current public school program is essentially mandatory "education insurance". We as a society want an educated public, so we force everyone to pay for it. The problem is that it's administered by the government, so politicians and bureaucrats decide what's good for children instead of their parents.
The entire situation in Wisconsin would not exist if public school didn't exist and private school was affordable. I think things like the Khan Academy help move us towards that end.
But you seem to be tossing the baby out with the bathwater when you suggest that we put all of the money back in the public's pockets instead of in government coffers. I don't have a problem paying to improve the average level of education. I am just against inefficiency and waste, which is why I suggested vouchers directly back to families.
I guess I would get less than what I put in but thats ok with me.
I have a child and there's no way I'm sending him to government school. I want him to learn everything he can get his hands on, not just what some bureaucrat decides he should learn. I don't want his education focused on passing tests that somehow measure a school's effectiveness; I want him focused on learning.
Vouchers are an admission that public school is broken and that competition is needed. The system is funded by force, not by the market. Instead, I propose that we stop trying to fix a broken system and instead replace it with one that works and isn't governed by politicians.
Personally I believe that the current US educational "reform" movement is presenting a false dichotomy and that education can be reformed and made better without falling back on "Free market makes it better" because demonstrably in many cases is does _not_.
A better way I think would be for people to keep paying what they do in taxes for education but then giving them vouchers for that amount that they could spend at any school.
Socially fair as well as building a competitive marketplace for schooling