What's interesting about the school situation, is that due to Riceville's location in comparison to other school districts, and how it straddles the Mitchell/Howard County line, its not going to be feasible to consolidate w/any one of the surrounding districts.
If they consolidate with Howard/Winneshiek (Cresco), you would have kids in NE Mitchell County going to school 40 miles away when they could be going to school 20 miles away. You have the same problem for kids in Howard County if it were to consolidate with Osage or St. Ansgar in Mitchell County.
What makes the most logistical sense is to split the district 3 ways between Cresco, Osage, and St. Ansgar.
Yea, they've thrown in with St. Ansgar for wrestling the last few years, but I think you're spot on with your assessement. That area has had a large portion of it's rural population "taken over" by the Mennonites, and thus, none of those kids are going through the public school system (not an indictment of the Mennonites, just a statement of fact.) If it was feasible for them to just flat out consolidate with somebody, I've got to think it would have already happened. They've been hurting for enrollment for awhile. I think you'll end up seeing them just disband the school with the kids going to the nearest school system for them. It's too bad for a once proud school system, but such is life in a state with declining rural population.