That is what hit the local school. So they shut it down, and most of those kids ended up in private schools.
Having tiers of schools is actually illegal. It is called “Tracking” and used to be done, but that was made illegal because certain groups tended to be on the lower track. It still happens, but instead of a different school the kids end up in different classes.
It may be illegal, but the law is the immoral party in this case.