I think the poster is asking whether Federal gov't involvement has created the failure of our educational system. Too bad Reagan was not able reverse yet another horrific Carter's policy. He correctly understood that education is best left up to local overview and administration.
"Reagan’s ABCs
by Dan Lips
During the 1980 presidential campaign, Ronald Reagan dubbed the fledgling Department of Education "President Carter's new bureaucratic boondoggle." Two decades and billions of dollars later, Reagan's assessment holds true.
Under the department's watch, the American education system has continued to slouch toward utter failure. Test scores show that one out of three fourth graders can't read. A significant achievement gap between the races still exists. Meanwhile, a recent audit of the department's records found that nearly a half billion dollars of taxpayer funds intended to support education were either stolen or "missing."
More important, Reagan understood the proper role of the federal government in education: "Education is the principal responsibility of local school systems, teachers, parents, citizen boards, and state governments." Adhering to this principle, Reagan sought policies that "insure that local needs and preferences, rather than the wishes of Washington, determine the education of our children."
http://www.cato.org/research/education/articles/reagan.html