Well, my first and foremost idea; teach the kids more on a track like colleges do (you have the choice of if you take a class online or in class), but you are still allowed to participate in school activities (like sports, prom, clubs, etc). The problem I see is this, kids do have some choices, but if they take the after hours GED, or alternative schools, then they are not in mainstream school with the mainstream programs which most people list on resumes. The public school's answer to the problem at hand is not making the situation better, but worse for these kids when they actually do Graduate.
I personally know a family (my son's best friend), who takes college classes for high school (paid for by the parents), and he must take his English at the High School, but because they choose this route of teaching their son, he cannot participate in the High School events. He is forced to participate in College events, but some college events requires you to be 18 do pariticipate. So, in some things, he is in limbo. He loves it though. The public high school program was failing him, so his parents took his education in their own hands. BTW - I used to home school my kids using the internet, and other tech devices. They are so independent, and I like to think it is somewhat due to the school environment I provided them.
I believe school boards need to get creative and open their minds, not their wallets. Can you imagine how much money a school system would save on buses, electricity, brick and mortar, if they would open their minds and allow many of the students to earn a regular diploma from home??!! So what, shut down the schools due to no money - let the kids (who want to and who can) learn from home. If their grades start to drop, then force them back into the classroom. LOL I can imagine many kids keeping their grades up just to stay out of regular school!
Raise the drop out age to 18, and let all 16 and above choose how they want to attend school. Or, just let the parents choose. We used to travel alot, so that is why I homeschooled. It was easier to take vacations with my military husband on his schedule, not the school's schedule.
There are so many ways home schooling could save the school system money. And they would not have to lose teachers. The online students still need teachers and mentors. But, if we lose a few of the bad teachers and let the good ones work from home grading papers, well I am all for that too. But, we won't go into that.