Yes, that is true. There was an article about it, in response to an article in a secular paper, in a recent issue of The Catholic Advocate, the diocesan newspaper. I looked for it on the Web site, but couldn't find it and I've already gotten rid of the hard copy I had. There's a chance it might be in the next issue posted online.
Anyway, the article in the diocesan paper said that the Archdiocese had been contributing on the order of $100,000 per year into the school's budget and couldn't continue doing so indefinitely. The school was not successful at finding a balance between expenses and income.
The Archbishop found a better use for the money.