What does exempted school mean?

-I give all credit to Chess Right on answers.Yahoo.com

I can only guess, but I suspect it has something to do with a local taxing structure. Most schools are supported by local property taxes and this one may have some different financial support. It could also be some sort of a legislated thing.

I would be curious to know what they are "exempted" from, too - and I would call the mayor's office of your village (or the superintendent of the school district in question) and ask them. Either office should have a website with some contact information or a listing in your local phone book.