Companies with government-granted monopolies never have to worry about going out of business. And they can therefore behave badly without any consequences.
Since public schools are funded through tax dollars, the schools don't really care if their safety measures are done in a way that treats students with the sort of respect paying customers would likely receive.
Private cities may seem outrageously radical or utopian, but we are already using this approach very successfully in other areas of our lives. The transfer to our social order is only the last step in a development already under way.