Believe it or not, one of the fixes really just does just come down to money.
It's proven in theory and in practice.
My four years in high school, not a single proposed piece of local legislature for school funding was voted down. I lived in a fairly affluent suburb in Texas. Pretty much all the funding came directly from property taxes.
My high school was recognized in my senior year as being the "best" public school academically in the entire state. We had a 99% graduation rate, and a 75-80% secondary education attendance rate.
The biggest difference between that school district and most other school districts is that we had well payed teachers, well-funded classes and supplies, well-funded arts and sports programs.. I could go on.
Give more money to the system, and you get better tools, better teachers, and more motivation for students.
There are lots of other little things that could be done, but the little things are surprisingly more difficult to change on the whole.
Edit:
To skiploader's complaint about money, as it relates to my public school experience.
All the legislature that was passed with regards to my school districts' funding were specific in what they were funding.. the new concert hall, chem lab etc. Skip is right that we have to make sure that money is going to do something useful.