Education equity nonprofit faces collapse after dispute with WA commerce department

An education advocacy nonprofit says it may have to close its doors because the Washington Department of Commerce is holding back $3.6 million in grant funding for a digital literacy program.

The Equity in Education Center was a lead contractor on the state’s Digital Navigator program, a two-year initiative to provide broadband access, computer training, and other services to underserved communities. Dozens of nonprofits and businesses received funding to carry out the work, which ended this summer.

After a state audit of the Department of Commerce last fall found issues with the agency's contracting and accounting, Equity in Education Director Sharonne Navas said, the agency requested additional records from her organization and the three dozen subcontractors EEC oversaw on the program.

“They turned around and basically put it on us to give them everything that they needed without necessarily telling us what it was that they were looking for," Navas said.

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Navas said her nonprofit came to an agreement with the Department of Commerce in December about the records they must provide, but that the agreement was thrown out when Joe Nguyen took over the state agency the following month. Since then, Navas said, the accounting records the agency has asked for have changed multiple times, and millions in state reimbursement for her organizations and others continues to be withheld.

A Department of Commerce spokesperson said the state can’t comment on what’s become a formal contract dispute. But in an interview with Publicola published last month, Nguyen said his agency had paid all invoices with proper receipts.

Navas said the dispute has driven some subcontractors to the brink of insolvency and that her organization has laid off much of its staff and will furlough its remaining employees this month.