Bullying and abuse of any kind should be discouraged in schools. No kid should feel threatened or unsafe in school. I'm not exactly pro-gay, but anti-gay slurs like 'faggot' are especially painful, whether or not the target of such a slur really is gay.
If the public schools can't maintain discipline, it's time for home schooling or private schools.
No....it's WAY past time!
SEPARATE SEX AND SCHOOLS (State)