Of course it’s not illegal to be racist, it’s just ignorant and stupid, neither of which themselves is illegal. If it were we wouldn’t have a government.
Schools have a responsibility to the safety of their students in particularly bullying. So something like this can be investigated but likely will go nowhere.
For anyone interested in whether the school has a right to look into this…
Out of School Conduct
Out of school conduct means conduct which occurs while not at school or under the supervision of a school authority. The following conduct by a student of the District which occurs out of school, but which has a direct and immediate adverse on the discipline and welfare of the school is prohibited.
The use of alcohol and/or other drugs
Fighting or other violent or disruptive acts towards school personnel including pupils
Acts of disrespect towards school authorities and teachers
Threats including bomb scares against schools or school personnel including students
Acts that result in damage to school property
Such out of school conduct which affects the schools in the manner described above shall subject a student to any of the following disciplinary penalties depending on the administration’s discretion:
Suspension from school and/or extracurricular activities
And you believe that prohibits the school from looking into the matter, why? And what makes you believe their investigation is limited only to that photo, and only to that time and that place?