Eagler, Florida already does the voucher for F grade schools.
Yes, the grades come partially from standardized testing. (also grad rates and attendence are factored in.) It's not just straight test scores either, you have to show improvement. So when your students top out, you're no longer an A school, you're a B school. This happened last year in our district. One of the elementary schools scored some of the highest test scores in the state, and was well ahead of the other elementary schools in the district. It was a B school, while several other elementary schools were A schools. I guess you could say that's fair though, since they're doing as well as they can (based on the scores topping out) they don't need more funding than the other schools for technology and teaching resources.
1. Pay the teachers more. How to do this? Cut out as much beauracracy as you can. Most public districts are VERY top heavy in administration. Even in a district with streamlined administration, the teachers don't get paid much. It's difficult to pay the teachers more based on what the state gives the school districts (I'm speaking solely for Florida, it's where I live, and yes, I work in a school district as a web admin.) Then you have to do the thing that NO ONE wants. Raise taxes or appropriate more money for education. Or you can lie like Florida did. We have a lottery that most of the funds generated from go to education. It was implied that the lottery would supplement current education funding. Nope. The current funding was mostly diverted to other areas and the lottery became the main funding for education in the state.
2. give the teachers more tools. Computers and educational software are very important in helping teach our kids. Remedial software can help catch children up, for example.
3. get the parents more involved, like mathman said. The parents need to take an active interest in their child's grades. It's wonderful to see Skuzzy talk about his kid, you can tell his genuinely interested in his education. If the kid is falling behind in school, the parents need to help out, either do it themselves or get the kid a tutor if he/she has problems grasping a concept.
The scary thing is how obvious these things are, yet nothing is done about them. Teachers need to be paid more. They are public servants that basically shape the future of our country. Think about it, does the average kid spend more time with their parents or their teachers?
oh, and gotta give my district some props... they know how to teach the kids to the FCAT, florida comprehensive assessment test. In most categories and grade levels they were first or tied for first in the state, out of 67 districts. The rest were second, with four 3rds and one 4th. Nothing lower than that! I think the 6th, 7th, and 8th grade levels were all 1st or tied for 1st.

However, all that means is the kids are trained how to take the FCAT, it doesn't mean they've actually learned everything they should have learned in their grade level. It's only Math, Reading and Writing. No science or social studies, so those subjects probably get skimped on for the Elementary kids...