I'm just rewatching season one, and something occured to me that didn't when it was first on... I don't understand why Kevin was fired for knowing about Milton and Lisa, when Louisa knew about it all just as well, and she certainly didn't say anything either. Hmm.
It's just one of many mysteries in the BP universe. So many of the secrets that teachers on the show kept from the administration would be firable offenses in today's zero-tolerance era in public schools.
Well, Milton Buttle wasn't exactly fired himself. He was forced to resign. Sure, he would have been fired if he hadn't agreed to resign, but being forced to resign may have given him some advantages that Kevin Riley didn't have, although Kevin did get another teaching job.
The principal and vice-principal didn't know Louisa was aware of the affair. They had no reason to fire her.
Actually, Lipschultz told either Guber or Harper about overhearing the conversation between Louisa and Milton. Hence, it was never explained why she wasn't fired right away.
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