The Archdiocese of Indianapolis is cutting ties with Brebeuf Jesuit Preparatory School after the school refused to fire a gay teacher, the latest chapter in a growing debate over LGBTQ staff in local Catholic education.

The decision comes with limited financial implications for Brebeuf, but it could isolate the northwest side school from the larger Catholic community.

Brebeuf, which is sponsored by the USA Midwest Province of the Society of Jesus, received notice Thursday that the archdiocese will issue a canonical decree Friday stating that the archbishop will no longer formally recognize Brebeuf Jesuit as a Catholic school in the archdiocese.

Brebeuf receives no financial support from the archdiocese, but has partnered with it since its founding in 1962.

Greg VanSlambrook, principal at the high school, said Brebeuf had worked hard to avoid this outcome but the split will not change anything for students or families. The partnership had enabled VanSlambrook to participate in meetings of Catholic school principals and allowed archdiocesan priests to minister at Brebeuf, though the school does not have anyone from the archdiocese at the school currently.

"All of our programming will remained unchanged," he said. "There are some things we're going to miss, but it's not things that students and families will notice."

Brian G. Paulson, provincial for the Midwest Jesuits, called the decision "disappointing" in a statement posted to the group's website. He said the Midwest Jesuits and Brebeuf have been fighting the archdiocese over the gay teacher for the last two years.

"Brebeuf’s administration and Board of Trustees have determined that following the Archdiocese’s directive would not only violate their informed conscience on this particular matter, but also would set a concerning precedent for future interference in the school’s operations and other matters that have historically been the right and privilege of Brebeuf Jesuit officials," Paulson said in his statement.

Because Brebeuf is an independent Catholic school, not governed by the archdiocese as many other Catholic schools in the city are, administrative decisions are usually left to the school.

Paulson said the teacher is a "longtime valued employee of the school" and does not teach religion.

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He said that a representative of the archdiocese has verbally assured Brebeuf that it will continue to allow Jesuit priests to serve in leadership at the school and they can still hold Mass on campus. He said the Midwest Jesuits will appeal the archdiocese's decision.

In a statement released Thursday afternoon, the archdiocese said all archdiocesan Catholic schools and private Catholic schools have been instructed to clearly state in their contracts that all teachers "must convey and be supportive of all teachings of the Catholic Church."

"To effectively bear witness to Christ, whether they teach religion or not, all ministers in their professional and private lives must convey and be supportive of Catholic Church teaching," the archdiocese said in the statement. "The Archdiocese of Indianapolis recognizes all teachers, guidance counselors and administrators as ministers."

Brebeuf is one of 68 schools Catholic recognized by the archdiocese. The highly regarded private school currently serves about 800 students in grades 9-12.

In a statement posted to the school's website Thursday, Brebeuf President William Verbryke said that the archdiocese's decision would not change the mission or operations of the school.

"As an institution with a mission to develop men and women for others, our intent has been to do the right thing by the people we employ while preserving our authority as an independent, Catholic Jesuit school," Verbryke's letter read.

The school has a robust nondiscrimination policy posted to its website that protects school employees and other members of the school community from discrimination based on a whole host of factors, including race, religion, sex, gender identity, sexual orientation and marital status.

Only the president, principal, religious studies teacher and campus minister are required to be staffed by practicing Catholics.

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VanSlambrook said decisions about teachers are made based on how well they carry out the mission of the school and their skills in the classroom. The school values diversity in its teachers and students, he said.

"We feel that people from many walks of life, whether Catholic or non-Catholic... can come carry out our mission with effectiveness and with care."

Brebeuf is not the first Catholic school in Indianapolis to grapple with how to handle gay employees.

Roncalli High School has been under fire since it suspended a gay school counselor last year.

Shelly Fitzgerald was placed on administrative leave over her marriage to a woman. While many in the Roncalli community stood with the school, a vocal group of students, parents and alumni have urged the school to take a different course. A group of students formed an advocacy group, called Shelly's Voice, to support LGBTQ individuals who have faced discrimination by the Catholic Church.

Fitzgerald has since filed a discrimination complaint with the Equal Employment Opportunity Commission against the school and the archdiocese.

That complaint alleges intentional discrimination and retaliation on the basis of "gender, failure to conform to gender stereotypes, association with another woman and sexual orientation."

Another gay counselor at the school, Lynn Starkey, has filed a similar complaint with the EEOC. Both women intend to sue.

The archdiocese has denied the charges.

Call IndyStar education reporter Arika Herron at 317-201-5620 or email her at Arika.Herron@indystar.com. Follow her on Twitter: @ArikaHerron.