Gibbons' tourism merger rejected

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Lawmakers made it official Monday, serving notice they intend to reject the governor's proposal combining departments of Tourism and Economic Development.

Senate Majority Leader Steven Horsford, D-Las Vegas, said the bipartisan opinion of the Senate and Assembly budget subcommittee was that the two should remain separate.

Nevada faces a $2 billion-plus revenue shortfall in the next two fiscal years, but the subcommittee members agreed the $400,000 saved combining the agencies wasn't worth it during a severe tourism slump.

"We need these folks to be functioning well right now," said Sen. Warren Hardy, R-Las Vegas.

The bulk of savings in the tourism department, according to analysts, would come from elimination of the director's position.

"I just don't think it makes sense," said Assemblyman Pete Goicoechea, R-Eureka. "The savings aren't big enough."

Members also agreed they must return $5.6 million Gov. Jim Gibbons proposed cutting from tourism.

Altogether, tourism was facing a 58 percent budget reduction.

Lawmakers also agreed changes must be made in the Economic Development Department, including moving about $100,000 from the Reno and Las Vegas programs to rural program for economic development.

Finally, they agreed to put $1.4 million over the biennium into the Nevada Film Office budget.

The subcommittees are determining how much additional revenue they must raise to balance a two-year budget for the state.

- Contact Geoff Dornan at gdornan

@nevadaappeal.com or 687-8750. The Associated Press contributed to this report.