Is the education of all children important?

Yes, every child should be educated.

Why does the State only fund the education of children in Public Schools?

Mainly because of the teachers' unions and its lobbies who don't want competition. They are afraid to loose their monopoly over the funding.

Won't this make it difficult for my local Public School to provide a good education?

No, it will force them to innovate and earn your trust as a parent. It will also force them to spend the money wisely and will improve the education they provide. They do not have to provide a great service now. They only have to be better than a neighboring district so you live in their district.

Will the State be directly funding religious instruction if they fund every child?

No, the State will be funding each child. The parent then can choose whatever school they feel will best educate their child even if that is a religious based school.

Won't this violate Seperation of Church and State?

First, seperation of Church and State is nowhere to be found in the U. S. Constitution. Second, the State will be agnostic in that it will not be supporting any religion. The State is only funding the child. The school chosen is by the parents, thus the parents are choosing the religion of their choice if they choose a religious based education.