Great idea. President Trump said that a lot of governors wanted the Department of Education eliminated, which would allow for more local and state control. He has a point. Different states and municipalities have different educational needs. College is not for everyone, so we should not expect everyone to go to college when they leave high school. Some people join the military, some people go to work in the trades, some people take jobs that don't require education beyond high school, and some get married and become stay-at-home parents.
Studies have found that homeschooled students often outperform public school students and even private school students. Because of this, I believe municipalities should allow their residents to vote to eliminate their public school districts if they can either afford to send their kids to private schools or have the time and resources and ability to homeschool their kids. Municipalities that decide to eliminate their public school systems would have more money and time to spend on other issues, such as sprucing up parks and recreation centers, fixing roads and bridges and other infrastructure elements, adding more books to libraries (homeschooled students are the most frequent library visitors), and buying new and better equipment for first responders. They could also cut property taxes and encourage new residents and businesses to move in.
Texas is the state with the most homeschoolers. If Texas gets rid of some of their public school districts, they could lower sales tax rates (Texas does not have a state income tax) because there would be less paperwork and less need for government oversight, or spend their state sales tax revenues on other things.
When a town does decide to get rid of its public school district and reaps the benefits of doing so, someone should make a feature-length documentary film about that town.