Well, not quite. As Zahn writes, the Massachusetts high school in question was only performing scenes from its upcoming production of a show called "Falsettos," which Zahn describes as "a tale about a bisexual father torn between his family and his 'gay' lover."
Zahn's article is essentially a rewritten press release and blog post from the anti-gay group MassResistance, which explains the alarmism. An editor's note on Zahn's article claims that "Falsettos" contains "profane, lewd and possibly racist material." It's not explained what the "racist" material is supposed to be, unless it's the song "Four Jews In A Room Bitching," which in context is at most about stereotypes, not racism. (WND columnists' support for pre-1965 immigration policies formed under the influence of racism and eugenics, on the other hand...)
Despite WND editor Joseph Farah's apparent edict that his reporters should be "getting other points of view," "interviewing those with whom you disagree," and "representing honestly the opinions of others," Zahn makes no apparent effort to contact school officials for their response. Then again, Farah's edict may apply only to reporters who write about WND, not to those who work for it.