I have heard some great things about the Kodak EasyShare camera! It is available at Walmart but is 1/2 the price on the Walmart website! Seems to be easy to use and is small and compact! Good luck in your search!
Not sure that i can help you with a brand of carera for your use but I have an idea for cost effective. I have approached our yearbook staff and newspaper staff and am trying work out a deal to use there old cameras when they update, or just use there students during class are practicing photography. If nothing else, we may work a deal to go in with them with some budget fund and have use of the camera when the need comes up.