So how does one solve this problem once it’s entrenched? Imposing a new funding model on top of the existing business typically doesn’t work. Instead management needs to create an autonomous organization that can craft its new business model from scratch as the innovation demands–serious business model innovation.
Given this, I’d be surprised if districts could simply shift to the new funding model Hill describes—and even if that didn’t matter, because this funding is opposed to how they operate today, they will predictably gear up to fight the sort of wholesale change for which Hill advocates.
It’s one of the reasons that I think a more fruitful way forward, at least for now, is to create these new funding models for the online learning entities that are growing—just as Florida did with the Florida Virtual School, for example—and build on the change from there as these disruptive innovations gain share.
For the rest of the article, go to School Finance in the Digital-Learning Era: A Review

