Senior senator first Republican to buck governor on no-taxes pledge

By David McGrath Schwartz

Wednesday, Feb. 2, 2011 | 2:01 a.m.

Dean Rhoads, the state’s senior senator, became the first Republican lawmaker to publicly break with Gov. Brian Sandoval, saying he thinks the state will need to raise taxes to balance the budget.

Rhoads, who is serving his final year in the Legislature because of term limits, told the Sun that cuts in education and social services in Sandoval’s budget are too deep.

“There will have to be deep cuts like Sandoval proposed, and tax and fee increases,” Rhoads said Tuesday. “We’re going to have to do a combination.”

Sandoval’s budget, unveiled Jan. 24, balances revenue and spending by cutting state services, raiding local government coffers and using budget gimmicks such as borrowing against future tax revenue.

Although conservatives and most Republicans have embraced the budget plan, the Democratically controlled Legislature has given it a thorough and critical examination over the past week, expressing particular concern over a 9 percent net cut to K-12 schools, 17.66 percent reduction in higher education spending and cuts in social services.

After a long meeting Tuesday where advocates for the mentally ill warned of service cuts under Sandoval’s budget such as specialty courts for the mentally ill, Rhoads said: “We’re basically taking wheelchairs from senior citizens.”

A 28-year veteran of the state Senate and rancher from Tuscarora, north of Elko, Rhoads said he didn’t mind being the first Republican to break ranks with Sandoval.

Like Sandoval, he also hopes the Legislature could pass a budget without raising taxes. “I hope he’s got a magic wand,” Rhoads said.

Rhoads was an ally of Bill Raggio, the 38-year veteran who retired unexpectedly last month. Rhoads is seen as a moderate on taxes and protector of rural Nevada’s interests.

Pro-tax forces, which include many of Nevada’s largest businesses, have expressed concern about Sandoval’s budget, but have struggled to find a strategy to override the popular governor’s promise to veto any budget that contains a tax increase.

Indeed, Rhoads’ vote alone won’t alter the equation.

If Democrats are able to hold their votes, they would need three Republicans in the Senate and two in the Assembly to pass a tax increase with the necessary two-thirds majority and override a veto.

Senate Minority Leader Mike McGinness, R-Fallon, said that although he respects Rhoads, he disagrees with him.

“I believe the majority of the caucus is behind the governor on the budget and his pledge not to raise taxes,” McGinness said.

He said he doesn’t like the cuts proposed by Sandoval, either.

“The problem is, every day I open the paper, casinos have lost money, stores in my district are closing, businesses established decades ago by families just can’t make it,” he said. “The budget cuts are too high. No one likes to see them. But there are real tough, difficult choices.”

Sen. Ben Kieckhefer, R-Reno, who is also seen as a possible yes vote on taxes, said he supports Sandoval’s position. Although there are some cuts he will try to reverse — an autism program Sandoval proposes to eliminate — he also said he thinks it can be done with the money Sandoval has to spend.

Sandoval’s Chief of Staff Heidi Gansert said the administration stands by its budget.

“There are pieces that can be moved or changed somewhat,” she said. “We need to make sure we stay within the constraints of dollars we have to spend.”

A former Assembly minority leader, Gansert said she thinks both the Senate and Assembly Republican caucuses back the governor’s plan.