Laxalt Rules Out ’88 Presidential Race, Cites Finances

Former Sen. Paul Laxalt of Nevada, a confidant and longtime political supporter of President Reagan, announced Wednesday that he will not enter the 1988 race for the Republican presidential nomination because of fund-raising difficulties.

The surprising announcement, issued by his campaign committee, said that Laxalt had made a “careful and realistic assessment” of his situation and concluded that, “while the political response was encouraging, the financial outlook was not as bright.”

“We are a family of very modest economic means, and I wasn’t about to embark on a campaign that would have led us into a financial black hole,” said Laxalt, 65, who reportedly had raised nearly $1.2 million in contributions.

On April 28, Laxalt announced that he was forming a 147-member exploratory committee and said that he wanted to have $2 million in campaign funds in the bank by Oct. 1 before he would make a final decision about running. At that time, he said his campaign was “a go” and that his decision to run was “as close to final as one can get.”

In Wednesday’s brief statement, however, he said that, even if his fund-raising goals had been met, “the money, in my opinion, would have been inadequate to conduct a viable presidential campaign.”

Laxalt, secluded with family and friends at a rustic mountain home in Nevada that is a seven-mile hike from the nearest passable road, told United Press International Wednesday night that his decision not to seek the nomination was final.

“This is it. The curtain is down,” said a smiling Laxalt.

“There are no tears,” said his wife, Carol.

Their daughter, Shelley, also was with her father Wednesday at the family hideaway, which has been in the Laxalt family since the former senator’s father herded sheep in the mountains above Carson City. Campaign treasurer Jerry Dondero, press secretary Tom Loranger, friend Bob Bouchez and several relatives also were present.

“This is where it all starts and ends,” Laxalt said of the retreat, which is at an elevation of 7,500 feet. “The air is clearer up here.”

Because of his modest standing in the polls, Laxalt’s withdrawal is likely to change the GOP contest only by narrowing the choices for conservatives.

“At 1% or 2% in the polls, Laxalt (not running) is not going to have a Gary Hart effect,” said California political consultant Sal Russo, who is working for another Republican candidate, Rep. Jack Kemp of New York. Laxalt’s move will also cut free a number of prominent Republicans who were backing his bid, making them available to other contenders. One such Laxalt consultant was Reagan pollster Richard B. Wirthlin.

The decision leaves the race without a serious candidate from the West, where Republicans have done well in recent presidential elections. Laxalt had hoped that his Western base and interest in regional issues would be an asset and distinguish him from others in the field.

Minutes after Laxalt’s announcement, several Republican presidential aspirants predicted that they would inherit much of his support.

Kemp, campaigning in New Hampshire, said that Laxalt was “promoting the same conservative principles I promote” and added that he hopes Laxalt will “work with those of us who share his principles in taking the Reagan revolution to its next stage in the next administration.”

Meanwhile, a spokeswoman for Senate Minority Leader Bob Dole (R-Kan.) said, “Sen. Dole and Paul Laxalt both have similar records in the Senate, and we see a great opportunity to attract a lot of the Laxalt support.”

A senior aide to Vice President George Bush predicted that Bush could be a major beneficiary of Laxalt’s withdrawal, and he noted that Laxalt’s friendship with the President had once been expected to take away support from Bush’s campaign.

Edward Allison, the Laxalt campaign’s political director, said Laxalt himself had made the decision to leave the race. He said he respected Laxalt’s concerns but added that, “on the other hand, we’re all disappointed.”

The White House would not comment on the announcement.

Laxalt was chairman of Reagan’s three presidential campaigns and retired from the Senate in 1986. He had based his prospective candidacy on a pledge to continue the Reagan agenda. He said he wanted to succeed Reagan in the White House because “there is much unfinished work to do.”

Since the congressional Iran- contra hearings, however, Laxalt has attempted to put a modicum of distance between himself and Reagan. He criticized the President’s detached management style and said he would mount energy and trade policies more effective than Reagan’s.

Apart from campaign contributions, another obvious concern for Laxalt was the recurrence of questions about his “Nevada problem.” Although he settled a lawsuit in June with the Sacramento Bee over a story citing money-skimming allegations at a casino he once owned, Laxalt, a former Nevada governor, still faced questions at press conferences on his political and business associations in a state with prominent gambling interests and organized-crime problems.

Staff writer John Balzar contributed to this story.