ELIZABETH, N.J. (PIX11) — School board members in Elizabeth, New Jersey knew they would have to address a troubling situation during their regularly scheduled meeting: allegations of racism against a school principal.

Superintendent Olga Hugelmeyer said the board is “outraged” by the incident, adding it was “immediately addressed.”

A municipal source close to the matter said the principal involved was Yvonne McGovern of the Mabel G. Holmes School. The outrage stems from an encounter that reportedly took place between McGovern and a young special needs student who allegedly called other students and staff a racial slur.

Kason Little, a community organizer, said instead of correcting the student’s behavior, McGovern told the student another offensive word to use instead.

“[She] gave him an alternative to continuing racism instead of actually dismantling it,” Little told PIX11 News.

A source told PIX11 News the district took disciplinary action by suspending McGovern. She was also transferred to another school and sent to sensitivity training.

But Little and other concerned residents said that isn’t enough.

“She’s still working,” community member Madeline Hoffman said Thursday night. “She’s working as a vice principal at another school. When in this country will we ever hold people accountable who say racist things?”

McGovern did not respond to PIX11 News’ request for comment. The school district declined to discuss the incident beyond what was said publicly during Thursday’s meeting, calling it a personnel matter.