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LOUISVILLE, Ky. (WDRB) -- A Catholic school that's been in New Albany for 140 years is closing at the end of the school year.
St. Mary Catholic Academy has been plagued with money problems.
It has amassed a debt of $1.2 million, which the Archdiocese of Indianapolis has agreed to forgive.
St. Mary has 139 students in preschool through 8th grade, and 12 teachers.
All active members of St. Mary parish will be offered the parish tuition rate at any other Catholic school in Floyd, Clark or Harrison counties.
They will also be offered a one-time $1,000 scholarship per family.
Father Henry F. Tully, pastor of St. Mary Parish, issued this statement:
"St. Mary Parish, the Archdiocese and the receiving parish schools will be working together to ensure the smooth transfer of all of our students. Our school faculty and staff have been true blessings for our parish and school. The archdiocesan Human Resources department and Office of Catholic Education will be working with our faculty and staff to assist them in finding new employment."