The school experienced a population decline as Hedrick's economy faltered; in its final year it had about 200 students and 40 employees.
The leadership of the school district stated that the small population meant it could not offer a full range of courses.
[7] Barbara Vobejda of The Washington Post stated "Many of those involved agree that the problems were largely a result of declining population.
"[1] It was the first school district in Iowa to be closed involuntarily by the state government,[8] and the City of Hedrick itself was facing an economic decline.
[1] Area residents disliked the move, and Hedrick CSD officials considered whether they could file lawsuits.
[14] In 1991 Mosbey expressed a fear that the loss of the school would further accelerate the economic and social decline already in the town.
[2] The basketball team was valued by the community, and its main rivalry was with the Pekin school district.