Voters in the Rio School District approved a referendum on Tuesday that some called a last-ditch effort to save the school district.
The referendum was to exceed the levy limits over the next three years for a total of $1,270,000.
The final vote was 627 to 340 in favor of the referendum.
Village leaders and business owners said the existence of the school ensures the small town's survival.
"I've seen towns in other states that have lost schools and they've become ghost towns," said resident Jennifer Wearne.
Wearne has two children in Rio schools.