Ad program delayed for prepaid tuition

Wednesday, Aug. 14, 2002 | 9:48 a.m.

Cy Ryan

SUN CAPITAL BUREAU

CARSON CITY -- Attorney General Frankie Sue Del Papa has blocked, at least temporarily, the award of a $370,000 advertising contract to entice people to invest in the Prepaid College Tuition Program.

The state Board of Examiners Tuesday, at the suggestion of Del Papa, delayed the award of the contract to the Rose/Glenn Group of Reno by the state teasurer's ofice, which oversees the tuition plan.

Del Papa said she could not see spending that amount of money during these times of budget reductions by state agencies. She said the teasurer's ofice could hire a person for $100,000 to do the job 365 days a year, rather than contracting out.

Del Papa also said she would like to see an evaluation of the program in which parents or relatives pay upfront to cover the later cost of college for their children and others.

Janice Wright of the teasurer's ofice said the program was in its fifth year and covers 9,400 students. There is $35 million in the trust.

The advertising contract was formerly held by R & R Advertising, Wright said, but the company felt the contract was too small to handle. So the teasurer's ofice put the contract out to bid. Rose/Glenn of Reno was selected to do the television, radio and newspaper advertisement and to prepare a booklet.

Wright said the new enrollment period begins in September, so the office wanted to get the contract awarded. The money for the contract comes from interest gained from investing the $35 million.

Del Papa said she knew this was "pool money" and not coming from the state's general fund. But she added, "This doesn't hit me right."