Are you sure about that? If fewer students attend public schools, then the public schools won't need as much money to operate, right?
Is it truly lack of money that makes public schools worse?
School vouchers are existed in some states.
Not only for private school, the voucher can be used for out of district school.
Not in many places yet.
"As of October 2011, Louisiana, Indiana, Ohio, Wisconsin (Milwaukee), and the District of Columbia offer low-income students vouchers.
Some states offer vouchers to special needs students allowing them to attend non-public schools.
Since the enactment of the Individuals with Disabilities Education Act (IDEA) declaring that all special needs students have a right to a free and appropriate education, school districts have occassionally turned to non-public schools that can better meet the educatoinal needs of certain special needs students. But 8 states have offered to fund all special needs students that wish to attend a non-public school. These states are Arizona (being challenged in court), Florida, Georgia, Indiana, Louisiana, Oklahoma, Ohio, and Utah.
School Choice: Vouchers
Orphanages aren't used as much now.
"While there are still some orphanages in the United States today, child welfare systems are less likely to use orphanages as placements for children and youth in foster care. Preferred placements include family settings and, when necessary, residential facilities that include services to help the children and youth reunify with their families or find other permanent families."
The state still pays foster parents to take care of the children.
If there aren't enough heterosexual couples who want to adopt children, why are the prospective parents on such long waiting lists?