I would have thought, using the same rational, that the children would have been yanked out of the public school and forced into a home school.
The way the system should work is like this. Your child is of the age to start school. You opt to homeschool him. Great. You get your tax dollars that would have gone to public education back so you can use them for materials to teach your kid. You sign the necessary documents and when you sign those you realize that your child will be tested if and when you ever decide to enroll them in public school. Say you homeschool until your child is in 10th grade. At that point the child is tested. If he fails and has not learned the necessary skills to do 10th grade work.... then the tax funded school should be under no obligation to admit the child.
I am all for homeschoolers that do a good job, but I am against those who screw things up for a few years and then expect the district to take over and be responsible for their kid who can't read in 9th grade.