The problem is irresponsible pet owners who fail to neuter and spay their pets.
Santa Cruz County, California, where I used to live, enacted in 1995 a law requiring neutering and spaying of pets. (A breeder's licensed can be purchased for something like $100 annually, IIRC.) The numbers of animals in the shelters dropped dramatically.
Efforts to pass a similar bill at the state level failed, however.
However, I'll note that all shelter neuter and spay, so if it irresponsible pet owners who are responsible, than it is limited to those owners who did not get their dogs from a shelter.
http://www.examiner.com/article/los-angeles-poised-to-ban-sa...
I think the real issue with overpopulating dogs is that they are treated as a commodity, so eccess stock is almost inevitable. Of course, every species that ever existed is always in a state of overpopulation, or exponential growth.
So what is the best solution so that exactly the right amount of dogs exist and none are killed. This is innovative, but I suspect training doesn't scale. Perhaps make it illegal to sell dogs until we're out of strays? Maybe a tax deduction for adopting a dog, or a tax penalty on buying a dog? Or an anti-breeding campaign (like the anti-fur one which has been very successful)?
I'd love to hear some cool ideas here.