If your wife was in Idaho she could get a significant pay out from District
insurance. Public entities in Idaho have an insurance pool for liability insurance. The pool will settle most claims that are less than $50,000 because it costs more to litigate the claim.
My suggestion is that your wife document each incident and email reports of the incident to the principal. If your wife feels she is being harassed by the student and the principal won't do anything, then you need to get an attorney and provide them with the evidence the principal won't do anything. Then have your attorney contact the District's attorney. I guarantee it will get taken care of very quickly.
Good advice. Never underestimate the fear that just sending communications using an attorney's letterhead can strike in the heart of an administrator.
Perhaps also go grab a copy of your school's discipline policies, if they have anything like that, so you can show what she expected versus what she was given?
Also, send your wife my sympathies. CCSD is indeed a crazy place!
-graduate of that school district... twenty years ago.