The Online Learning Imperative: A Solution to Three Looming Crises in Education — from all4ed.org by Governor Bob Wise with assistance from Robert Rothman

Excerpt:

CRISIS #2: The funding cliff—declining local, state, and federal revenues mean changing the education content-delivery model
Faced with a declining revenue base, any enterprise must make a choice: continue doing the same with less and hope to weather through, or innovate and institute changes that result not only in survival but in growth (emphasis DSC). Public education and the U.S. automobile industry face a common challenge: declining revenues and lackluster results. In the case of the auto industry, the consumer has finally said that the end product is not acceptable. This raises the bar even higher, forcing companies to operate with less revenue while also improving outcomes.

Some might argue that a rapid expansion of education funding could accelerate improvements in outcomes. The reality is that the current economic recession has taken the issue of continually increasing revenues off the table (emphasis DSC). The only issue for policymakers is how to apply limited funding in a more cost-effective manner that also boosts student outcomes—in short, a reengineering of how education is delivered (emphasis DSC).

Also see:
Press release: First school system in Idaho to require online learning
— from Virtual High School Meanderings blog
Currently Michigan, Alabama and New Mexico require all graduating students statewide to take an online course. Sugar-Salem is the first district in Idaho to adopt such a policy.