Krolicki had been courted by Republican leaders in Washington, D.C., to enter the GOP primary that already has about a dozen contenders seeking to unseat Reid, the Democratic Senate majority leader who is seeking a fifth term and is considered vulnerable. A poll conducted for the Las Vegas Review-Journal last month found that 52 percent of Nevadans had an unfavorable opinion of the state's senior senator.
In a conference call with reporters, Krolicki said given Nevada's economic crisis, the job of lieutenant governor "has more importance to its portfolio than ever before."
The lieutenant governor serves as chairman of both the state economic development and tourism commissions.
Current Republican front-runners include former state Sen. Sue Lowden, who resigned as chairwoman of the state GOP to run, and Danny Tarkanian, son of former UNLV basketball coach Jerry Tarkanian. Both have ben campaigning for months, and Krolicki would have entered the race with a big fundraising disadvantage and no organized campaign organization.
Both issued statements immediately after Krolicki's announcement and endorsed him in re-election effort.
"Brian Krolicki would have been a welcome and worthy candidate for the U.S. Senate," Tarkanian said. "I know that he was motivated by the same desire I have to get our country headed in the right direction again."
Lowden called Krolicki a friend. "I appreciate his decision and I will work hard to earn his support in my campaign," she said.
Others who've announced include Wall Street banker John Chachas, state Sen. Mark Amodei, and former Assemblywoman Sharron Angle.
Nevada's primary is June 8.
"A whole bunch of arrows needed to be pointed in the same direction at the same time," Krolicki said. "I think we would have had a very competitive campaign ... and the numbers proved that out."
But after considering the race and talking with his family, he decided running for re-election was the best decision and that being lieutenant governor was more important.
Krolicki, 49, added he believes several Republicans in the race can beat Harry Reid, but he would not immediately endorse anyone.
"Someone will be rising to the top and I think that process has to happen," he said, adding the eventual nominee will get his support.
Krolicki was elected lieutenant governor in 2006 after serving two, four-year terms as state treasurer. In 2008, just weeks after saying he was considering challenging Reid, he was indicted by a Clark County grand jury on charges of mishandling a state college savings program he founded while treasurer.
He characterized the criminal prosecution pursued by Attorney General Catherine Cortez-Masto, a Democrat, as politically motivated and said he believed Reid was involved. Reid and Masto denied politics played a role.
No money was ever missing from the $3 billion college plan. A Clark County judge dismissed the indictment in December, and Masto declined to pursue it. Shortly afterward, Krolicki again began eying a Senate bid.
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