Firm doesn’t want to pay full state fine

Friday, Aug. 16, 2002 | 11:20 a.m.

CARS0N CITY -- Harcourt Educational Measurement Co. has balked at paying a suggested fine for its foul-up in telling more than 700 students they failed the high school math proficiency test needed to graduate.

The state Department of Education proposed a penalty that it said was substantial.

Keith Rheault, the deputy state superintendent of public instruction, said today Harcourt made a counter-offer that was inadequate.

Rheault said department officials intend to talk to Harcourt officials next week. He said the department may call a special meeting of the state Board of Education to determine what path to follow, and options include considering the canceling of the $4.8 million contract to the company.

Some state board members already have suggested canceling the contract. But the department chose instead to try to negotiate a fine.

Harcourt, a private company based in San Antonio, has the $2.3 million state contract to develop and score the high school test. It also has a $2.5 million contract for the same work for third and fifth graders. It is working with the state to develop a test for eighth graders.

The 18-month contract with Harcourt is due to expire in June 2003.

The company made a mistake in grading the tests and told 736 high school sophomores and juniors they had failed.

The state department has declined to reveal what fine it proposed. Rick Blake, vice president of corporate communications for Harcourt, could not be reached for comment.

Paul LaMarca, who heads the testing program in the education department, told the education board last month there had been a "sequence of errors committed by Harcourt" since it took over the testing program at the start of the year.

Among the shortfalls were lack of timely delivery of the tests and grammatical errors, LaMarca said. He said then there would be a "significant penalty" imposed on Harcourt. LaMarca met early last week with Harcourt officials in Texas to talk about the suggested fine.

He said there was "no resolution" after the meeting.

Jack McLaughlin, state superintendent of public instruction, said there is a penalty clause written into the contract. He said the Legislative Interim Finance Committee and Senate Majority Leader Bill Raggio, R-Reno, insisted on the penalty.

One attorney is already advertising in newspapers that the students affected may be entitled to compensation for Harcourt's error. He is urging parents to contact the attorney, Glen Lerner, about their legal rights.