All parishes subsidize the schools to some extent from the offering basket. (My parish subsidizes over 50% of the tuition cost.) If parents refuse their obligation to contribute within their means to the needs of the Church, and this is an obligation as binding on pain of mortal sin as the obligation to attend Mass weekly, their children do not deserve the privilege of a Catholic education. Why should the rest of the parish shoulder the burden for slackers? "Do not give the dogs what is holy, nor cast your pearls before swine." (St. Matthew 7.6)
This may be true for a parish school. However this is not a parish school. Schools here are regional schools and are financed completely through tuition. No support from the parish or the archdiocese. In this case the parishioners were not contributing enough (per parish priest) and he did not feel that they should spend money on a Catholic education if they were not giving a large amount to the parish. I am only familiar with one family who received a letter. They had 2 young children who wanted to attend the school. They had contributed approx. $800 each year to the parish and volunteered both time and talent as needed. They attended mass faithfully. They were not wealthy and were hoping for some financial aid. The priest refused to sign the parish verification form.
"their children do not deserve the privilege of a Catholic education."
As I understand your thinking here, you believe that only those who are "deserving" are worthy to recieve the message of Jesus. I disagree. I believe the message of Christ is meant for everyone. If we were deprived of Christ's message based upon not only our sins but the sins of our parents, I fear the church would no longer exist. The Catholic Church is not a country club with an "exclusive membership". The church is for everyone.
As I was taught, only God has the right to judge what is within someone's heart.
And you teach CCD?