The problem isn't the funding, it's the attitude and system. I was just listening to an audio book of Heinlein's "Have Space Suit -- Will Travel" and his description of the inadequacies of the educational system of the 1950s is priceless -- you could multiply all his complaints tenfold today and NONE of them have anything to do with funding.
The problems with education today are society's values and emphasis on "soft" curricula and touchy-feely garbage instead of actually expecting students to learn something, particularly critical thinking skills, or demonstrate any initiative or responsibility toward their own learning. More computers actually make the problem worse (and I'm a technogeek both by education and avocation) when students think the answer to any question is "look it up in Wikipedia" or "Google it."
Read William McGurn's column in the WSJ -- he's talking about college but his argument could just as well be applied to pre-collegiate education.