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That's why I want to see more charter schools and school vouchers. Their existence demonstrates that you can make a better school than a public school using the same amount of funding.
Don't know how to apply this to other government services.
The same or less amount of funding, but more parent buy-in. There are limits to how selective a charter school is allowed to be, but "the parents cared enough and were middle class enough to navigate application red tape for a slot in an admissions lottery and a chance to drive their kid to a more distant school" is already adding non-trivial selection bias.
I'm greatly in favor of charter schools and school vouchers, and even if there were no effects besides selection bias, I think that level of unintentional tracking is probably better for both the selected kids (who can learn more things, if higher average class ability lets them go faster past core material) and the unselected kids (who can learn things more, if lower average class ability encourages the teacher to spend more time reviewing core material more intensely) ... but I wouldn't necessarily expect exceptional charter school results to generalize to full unselected populations.
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