A meeting was held to discuss the issue at Wesley Chapel in Boulder Friday evening.
"This could be one of those moments where the community is holding a mirror up to the church for it to take a look at its policy and reconsider what they've been doing," Wesley Chapel Pastor Roger Wolsey said.
Teachers at Sacred Heart of Jesus Catholic School were told about the situation earlier this week. Staff members say they were told a student would not be allowed to re-enroll because of his or her parents' sexual orientation.
The Denver Archdiocese says the student's parents are two women and their homosexual relationship violates the school's beliefs and policy.
"They're entitled to do what they want," Wolsey said. "And I would respect them no matter what they decide. [But] I think a lot of churches are doing a lot of soul searching right now."
In a statement sent to 9NEWS, the Archdiocese said, "Homosexual couples living together as a couple are in disaccord with Catholic teaching."
According to the Archdiocese, parents who enroll their kids at Sacred Heart of Jesus Catholic School are expected to follow the Catholic Church's beliefs.
"No person shall be admitted as a student in any Catholic school unless that person and his/her parent(s) subscribe to the school's philosophy and agree to abide by the educational policies and regulations of the school and Archdiocese," the statement said.
Because this student's parents are homosexual, the Archdiocese says they were in clear violation of the school's policy. Legal analysts tell 9NEWS the Archdiocese is within its rights.
Several staff members have said they are disgusted by the decision.
Parents whose kids attend Sacred Heart plan on meeting next week to discuss the issue.
One parent told us, "We're all very hurt by this decision."
(KUSA-TV © 2010 Multimedia Holdings Corporation)