My thoughts:
Parenting: Don't limit sex-ed to abstinence only, raise awareness of birth control so that these fools don't have kids, raise awareness of lack of usefulness of "timeouts" and other "sensitive" punishments and go back to effective discipline--reward when good, spank when bad. (Of course, once kids get to a certain age, other punishments become more effective)
Schooling: Bad teachers and administration caused by lack of competition and inability to fire bad teachers because of teachers' union's influence. Solve this by switching to merit-based pay to attract and keep good teachers, implement new policies that make it easier to fire bad teachers, and increase competition between schools by allowing kids to go to whatever school they want that they can get to (let the money follow the kids).
This particular kid: Send him to juvie and afterwards send him to foster parents.