Gibbons visits Legislature, meets with GOP leaders over state budget crisis

CARSON CITY -- Making a rare, surprise visit to the Legislature, Gov. Jim Gibbons met Thursday with Republican leaders and said he wouldn't accept raising more revenue from any industry including mining and gaming unless the businesses agreed.

"I won't accept any tax increase unless it is agreed upon by just about everybody," Gibbons told reporters while walking back to the Capitol after his one-hour private session.

It is a stance that Gibbons has consistently taken since the 2009 regular session of the Legislature.

Lawmakers meeting in special session are considering tapping the mining industry for up to $100 million in additional revenue to help balance the budget. There's also talk of asking the gaming industry to contribute another $62 million to help regulate the casinos.

The mining industry, Democratic leaders in the Senate and Assembly as well as key Republicans have said that they're close to reaching a final agreement on a contribution that would be about $100 million, including higher-than-expected proceeds because of spiking gold prices of more than $1,100 an ounce.

The Democratic-led Legislature is counting on the additional revenue to help fill an $887 billion budget gap without having to cut education and social services too deeply.

At least two of the nine Republicans in the Senate must go along with the revenue-raising plan and all of the 12 Democrats in order for it to survive any Gibbons veto. It takes a two-thirds vote in both houses to overturn a veto.

Gibbons, who is in a tough re-election battle and is having trouble raising money for his campaign, needs big contributors from industries such as mining and gaming in order for him to win a second term.

The governor's comments came after an unusual face-to-face meeting with Sen. Bill Raggio of Reno in the Republican Senate minority leader's office. The two men have been publicly feuding for weeks, partly because Raggio is backing Gibbons' GOP primary opponent Brian Sandoval in the gubernatorial race.

Raggio, after emerging from his 20-minute session with Gibbons, said he did not demand an apology and the meeting was "congenial."

"I didn't ask for one and I don't think one is necessary," Raggio said when asked whether he demanded Gibbons apologize for accusing him of not attending budget meetings ahead of the special session.

Raggio, who has voted for past tax increases that Gibbons has vetoed, has said he would accept more revenue from the mining and casino industries if the businesses agreed as well.

He said Republican and Democratic lawmakers were working together well in an attempt to finish work by the weekend.

"I sense a real desire to work together the rest of this session," Raggio said.

"Obviously we don't have an accord here among ourselves," he added, suggesting more work was needed to agree on a budget-balancing package to send to Gibbons to sign.

Gibbons didn't discuss his dispute with Raggio.

Gibbons also met with Assembly Minority Leader Heidi Gansert, R-Reno, and Republican Assemblyman Pete Goicoechea of Eureka, a minority whip.

Contact reporter Laura Myers at lmyers@reviewjournal.com or 702-387-2919. Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901. Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.