Hello,
That is just insane that he/she would say that. A quick question to you is “Are your residents allowed to read the newspaper?” If yes what would be the difference between the paper and a book? It seems like this is a money issue. If I were in your situation, I would contact an Alzheimer’s website and ask them the same question. They are knowledgeable and can help you further. In addition, if they say yes ask them for the research behind it as proof for your administrator.