Wall Street billionaire Steve Schwarzman gave a record-setting gift to his public high school -- and it highlights the dire situation American schools face

Public K-12 schools are facing budget shortfalls amid reductions in government funding. Steve Schwarzman, the billionaire founder of private-equity firm Blackstone Group, recently gave a $25 million donation to his public high school. Such donations to public K-12 schools are rare, especially compared with their private counterparts. Given the budget shortfalls, Schwarzman recently told a group of 3,000 superintendents that public schools need to startprivately fundraising the way universities a...