Why Not You Academy, a public charter school in Des Moines, wound down operations in June amid mounting financial strain, leaving roughly $3.8 million in debt due by summer 2027, according to a recently released state audit.
The Washington State Auditor’s Office determined the school did not fully evaluate its immediate and long-term revenue streams before committing to major facility upgrades and assuming new debt. The accountability review, issued Monday, spans the two-year period from September 1, 2024, through June 30, 2026.
Operated by the nonprofit Cascade Public Schools, the academy had leased and renovated its campus expecting an enrollment of about 400 students. In its final academic year, however, enrollment stood at just 64, a shortfall that significantly impacted state funding and operational viability.
Persistent enrollment decline, combined with ongoing operating deficits and shrinking cash reserves, prompted the school board to vote in November 2025 to cease operations by the end of the 2025–26 school year.正式 closure occurred on June 30.
The audit noted the school lost a key financial partner in fiscal year 2024 and faced continued difficulty in student recruitment and retention. Though the identity of the former sponsor remains unlisted, its departure marked the start of deeper fiscal challenges.
For the 2024–25 school year, the institution recorded $3.7 million in operating revenue against $4 million in expenses. Its general fund balance dropped from $1.913 million in 2023 to $1.044 million by 2025.
These developments echoed concerns raised in an earlier review, which had flagged the school’s vulnerability in meeting financial commitments while sustaining programs. That earlier warning has since gone unaddressed, according to the latest findings.
School officials explained that after evaluating options, leadership opted against pursuing aggressive enrollment growth and expansion plans, concluding instead that a phased closure would better serve students, families, and organizational integrity. As a result, initiatives aimed at restoring fiscal health were deprioritized in favor of an orderly wind-down.
The academy endorsed the audit’s latest findings and agreed with a recommendation to collaborate with the Washington State Charter School Commission and the Office of Superintendent of Public Instruction to finalize dissolution activities.
In its formal response, the school outlined ongoing efforts to settle outstanding financial and contractual obligations, preserve student and administrative records, complete required reporting and audits, and execute legal steps to dissolve the nonprofit entity.
Coordination with state agencies, legal advisors, and external partners is expected to continue until all closure milestones are met.
The audit does not specify which entities hold the $3.8 million in debt or detail plans for repayment, though it indicates that the school maintained strong compliance with legal and policy requirements across most operational areas, with effective safeguards in place for public funds.