Raggio, Hardy won't vote on tax increases

Two key Republican state senators, whose votes are considered essential to pass a $781 million tax measure and then override GOP Gov. Jim Gibbons' expected veto, said Wednesday they're abstaining to avoid the appearance of a conflict.

Senate Minority Leader Bill Raggio, R-Reno, said he doesn't have a conflict of interest but was advised by the Legislature's chief legal adviser to be cautious in the tax matter. While Raggio said he supports the tax package, he figured it would be best to not vote.

"I will do so reluctantly, because my first obligation here ... was to do what's right for this state and not for any particular special interest group or body or group of people, and that includes my own party," Raggio said.

Besides Raggio, state Sen. Warren Hardy, R-Las Vegas, said he will abstain from voting on the tax plan, also to avoid any appearance of a conflict of interest.

"I don't think I have any conflict," Hardy said. But he added that he doesn't have "rock-solid" legal advice that he can vote on higher taxes, and so he won't out of "an abundance of caution." If that legal advice changes, Hardy said he would vote for the plan.

The announcements threatened the tax plan, needed to help plug a $1.1 billion hole in a nearly $7 billion state budget for the next two fiscal years, that is being worked out by Assembly and Senate Democratic and Republican leaders as the 2009 session nears adjournment.

The plan, SB429, requires a two-thirds vote to win approval and to survive a veto. The 12 Senate Democrats need two Republicans to assure that necessary two-thirds vote.

After Raggio's announcement on the Senate floor, Senate Majority Leader Steven Horsford, D-Las Vegas, said it's vital that the tax plan win approval, given the alternative " massive budget cuts proposed by Gibbons throughout state government, including the state's higher education system.

Asked about Raggio's decision, Horsford indicated he'll continue to look for as many Senate votes as possible on SB429 because "it's more important to address the global needs of our entire state" than to get sidetracked because of concerns about potential conflicts.

A Senate rule change could clear the way for more votes. Horsford said, "We will continue to look at that to make sure that the rules that are in place and govern the way the Senate operates allow the member to vote, particularly on issues that are of immense importance."

Earlier Wednesday, a Republican operative fighting the tax increase plan said Raggio shouldn't vote for the plan, in line with legal advice and his pattern of abstaining on bills that pose potential conflicts.

Robert Uithoven, head of a nonprofit group called the Western Alliance Fund, said he's a Raggio supporter but believes Raggio "should remain consistent with his previously disclosed conflicts and avoid voting on the massive, pending tax increase."

He also said the Western Alliance Fund advocates for government policies that support low and fair taxes and isn't flatly anti-tax. In the case of the pending legislative tax plan, he added he believes "that raising taxes out of this already beaten and tattered economy is foolish."

Raggio has been a key member of the so-called "core" group of legislative leaders involved in lengthy closed-door negotiations on the tax plan.

Hardy also has been a key figure in the negotiations. He informed other lawmakers on Wednesday that he can no longer negotiate and will even abstain from voting on any package of bills.

Hardy said he has been threatened with an ethics complaint if he continues to negotiate a final package.