They didn’t agree that school could be open. They said it wasn’t school.
Now you got it! It was listed as some type of daycare,
which is legal. It's called a loophole, probably by the advice of their local officials.
Many places that are open are using different loopholes by the advice of local officials.
The Governor has given a lot of power to local officials to translate and enforce the laws as they see fit. For example, in many areas they are allowing Kolelim to open. No davening, no shiurim, and no meals. So it's not a gathering. Just a bunch of groups of two.
Yes, this is a fact. Albany is allowing kolelim if local officials are ok with it.