1. Unfettered school choice (let the failing schools fail. Schools compete. Parents decide the winners)
2. Performance based pay for teachers (employees should compete for higher pay, not just earn it with tenure)
3. I had 3 policy prescriptions but I can't remember for the life of me now... The first two would do wonders. 
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I came with solutions 

 How do you measure performance in education? 

 Nothing wrong with the grading system. I don't really see a problem with standardized testing either. Parents are the ultimate judge of performance in education for their children. If they see their education is behind peers at others schools, they can switch.