For-profit education is not a new focus for public schools in the United States. It has been around for several decades, has stimulated considerable controversy, and has been heralded by some as a panacea for improving learning for the nation's public school students. For-profit schools are run by private, for-profit companies or organizations often referred to as educational management organizations (EMOs). For the most part, for-profit or privatized schools are funded by the local, state, or federal government and offer free education to public school students. The number of public schools being operated by EMOs increased from 18,375 schools and 180,632 students in 2002-03 to 24,483 schools and 227,740 students in 2004-05. However, the number of EMO-operated schools declined to 23,457 schools and 218,675 students in 2006-07. These data suggest the growth of privatization in public education may have slowed and appears to be stabilizing. On the other hand, the increase in the number of charter schools advocated by the Obama administration in grants to states under the Reach for the Stars program may significantly expand the opportunities for EMOs to provide more "soft services" to public school districts. Is public education likely to be taken over by privatization? Bauman (1996) says no and maintains that the public education system is too large and entrenched to be privatized. In this article, the author argues that the public education system should be reformed by devoting more resources to equalize expenditures for all student groups, regardless of their race, ethnicity, community, or individual wealth.