When Larry wears Dave's jacket to school by mistake, he ends up getting suspended for 30 days by Principal Fink for finding pot in it. This leads to Dave and Vicky trying to get him enrolled in a parochial school with the same priest who Mike thinks is hitting on him.

When it's revealed that Kenny and his date will be attending the school's Sadie Hawkins dance, he and his date are both banned from the event for not keeping with its traditions. This prompts an outraged Larry to lead protest against the discrimination, while Dave goes to the school to argue the case. Meanwhile, once Principal Fink discovers that Kenny's been living with the Golds, he tells Dave that he must inform Child Services so that Kenny can be put in foster care, unless Dave can convince Kenny's parents to let him come home.

Because of failing gym class, Hillary risks not graduating high school. Feeling that their nest is emptying a little bit, Dave and Vicky feel the need to keep it that way, resulting in both of them agreeing to have no more children and taking steps to prevent that from happening. But in the end, Hillary graduates and a shock for Dave and Vicky unfolds.