Nope... I would never give school authorities to spank or strike my kids.
I would never give permission either. The article states the permission forms indicate the paddling would take place behind closed doors. I think that could potentially lead to abuse. Plus, if they're really using this as a deterrent, shouldn't it be done in the open?
I also think this won't work after a certain age. A very young age. The last time my father did such a thing to me I was 9. I stared back at him and didn't flinch while he was doing it. And since violence of this sort is generally unacceptable by US society at large, the kids will feel it's wrong. It's likely to produce negative results.