Let's dispense with the first reform plan immediately. The idea of federal vouchers for education was recently suggested by John McCain, whose website brags about all the education pork he's voted for. That's precisely what would result. The idea might appeal to a person who thinks the military model is ideal for all of society. But if you don't think that the feds ought to be collecting taxes to subsidize and control private academies, federal vouchers are no answer.
Conservatives ought to be on the front lines fighting such a scheme.
Another variety would contract out the present school system to private firms. The major advantage here is cost. It turns out that private firms can administer schools with better results at a fraction of the cost. This is why the Dallas Independent School District is considering inviting a company called the Edison Project, which operates 51 schools in 14 states, to come in and try their hand at educating kids. Not in the long term.