How to organize a school system

from NY Times Magazine:

Schools would receive money on a per-student basis, and principals could then use that money to staff their schools as they liked and pay for whatever instructional methods they chose. Each school would negotiate salaries and work rules directly with its teachers. The system’s small central office would be responsible only for oversight, though it would have considerable power to hold principals accountable: schools that didn’t produce results would be closed, and successful schools would be imitated and replicated.