Supporters of public education fear attempts to privatize schools, while the private sector has always struggled against the monopolistic power of the public schools that educates almost 90% of all K-12 students. This trepidation has recently been intensified by the creation of a "third sector" that includes charter schools, voucher programs, and the increased diversity of private education. This article looks at the dynamics of fear as shaped by increased competition among public, private, and privatized schools. In fact, both public schools and their private school counterparts, fear privatization of education because it draws students and resources away from traditional schools. And recently, the opening of new "religious charter schools" has crossed the lines between church and state, and between private and public education. Thus, the politics of education have become somewhat more confused and unnerving as the distinctions between public and private education are virtually disappearing. (Contains 2 tables and 1 figure.)