Gavra, “we” would be the gedolei Yisroel who tell menahalim that they can’t expel a student for poor behavior; kol shekein for lack of funds. And no, a school cannot expel an existing student and push it off to other schools.
ZD, conceptually, it doesn’t matter (if the administrator of St. Vincent’s had turned down a patient bleeding to death, he’s a rasha even if the hospital closes) and, tell me please, did those girls end up in public school?